India-United States Trade Policy Forum

On 23rd November, 2021, India and the United States held the 12th Ministerial-level meeting of the India-United States Trade Policy Forum (TPF). The Forum was reconvened after a gap of four years to advance the goal to develop an ambitious, shared vision for the future of the trade relationship between the two countries.

About India-United States Trade Policy Forum

• Established in 2005, India-United States TPF is a premier forum to resolve trade and investment issues between the two countries.
• It met last in October 2017. It was then replaced by negotiations between the two sides on a trade deal.
• It is co-chaired by the Indian Minister of Commerce and Industry and US Trade Representative.
• It has five focus groups - agriculture, investment, innovation and creativity (intellectual property rights), services, and tariff and non-tariff barriers.

Key Highlights

• TPF Working Groups: It was agreed that TPF Working Groups on agriculture, non-agriculture goods, services, investment, and intellectual property should be re-activated in order to address issues of mutual concern on an ongoing basis. The Working Groups can act as platforms for rapidly engaging on new trade concerns as they arise.
• Mutual Market Access: The Forum has decided to sign an agreement to facilitate U.S. market access for mangoes, grapes, and pomegranates, pomegranate arils from India, and reciprocate with similar access in the Indian market to cherries, pork/pork products from the United States.
• Totalisation Agreement: India and the US have decided to negotiate a Social Security Totalisation Agreement (A Totalisation Agreement is a convention between two countries preventing duplicate social security contributions for the same income).
• The agreement would allow workers from both countries to move their retirement savings.
• Restoration of GSP: India has sought restoration of the GSP (Generalized System of Preferences) benefits by the US.
• Ethanol Supply: The US has expressed interest in supplying ethanol to India for its goal of 20% ethanol blending with petrol by 2025.
• Pharma Sector: The two sides decided to partner with allies in developing a secure pharmaceutical manufacturing base and de-risk global supply chains in critical sectors like health.
• Collaboration in Emerging Technologies: Both countries recognise the importance of critical and emerging technologies like cyberspace, semiconductors, Artificial Intelligence, 5G, and future generation telecommunications technology.
• Climate Cooperation: India and the US exchanged views on approaches to enhance the utilization of renewable energy to achieve net-zero emissions, as agreed in the India - US Climate and Clean Energy Agenda 2030 Partnership.
• Services Sector: The Forum deliberated on ways in which legal, nursing and accountancy services can facilitate growth in trade and investment, and sought to work together on electronic payment services and digital economy.