Us Pressure On India For Firm Telecom Offer In Wto

India should improve its offer and bind its increasingly positive domestic practices in the telecom sector, US under secretary for commerce Stuart E Eizenstat said at a joint press conference with Indian commerce minister B B Ramaiah.

Eizenstat said an improved Indian telecom offer could break the current logjam in international negotiations.

The talks are stalled because of what the US administration termed inadequate offers from major developing countries, including India.

The US commerce department official also called for greater patent protection in India. It needs to come up to the TRIPs level, particularly in pharmaceuticals, Eizenstat said, outlining an area of concern for American industry.

 

Eizenstat and Ramaiah were participating in the second US-India Commercial Alliance (USICA) meeting here on Thursday. USICA is a bilateral private sector-driven initiative to improve trade between India and the United States.

On Thursday, the USICA board, headed by Hughes Network Systems chairman Jack Shaw and Ficci chief A K Rungta, agreed to extend the alliances initial two-year term until 1999.

The alliance will extend its scope to focus on environmental technologies and given added emphasis to small and medium-sized enterprises. USICA has been focussing on developing partnerships in agribusiness, transportation and infrastructure, power and information technology. Alliance members made specific recommendations on each of the four sectors.

In agribusiness, intellectual property rights protection and business contract laws were cited as two primary issues of concern.

In telecom, the alliance recommended that India improve its licensing process, encourage the internet and ensure the Telecom Regulatory Authoritys status as an independent arbitrator.

USICA also proposes to lobby both governments to resolve issues such as Indias import duty rates for information technology products, and US policies on granting trade visas to software professionals.

At the same time, the alliance will lobby to remove non-tariff barriers on software exports. Said General Electric vice president Michael Gadbaw, This was an exceptional meeting, which helped us understand the implications of the decisions.

USICA, however, pointed out that foreign investors were also concerned about the availability of fuel for power on a reliable basis.

In transportation, Rungta noted the government was yet to announce clear guidelines to attract foreign investment into building roads and bridges. Whenever the policy guidelines are clear, the take-off is smooth, Rungta said, pointing out that the countrys roads in particular were getting choked.

The Indian commerce minister gave an immediate assurance that the road sector would be soon opened up.

The US commerce department, meanwhile, announced it was seeking permission to set up additional commercial offices in Pune, Hyderabad, Ahmedabad and Chandigarh as part of its effort to look for new opportunities beyond the major metros. Said Eizenstat, India is perhaps the best kept secret in the world.