The U.S. has asked India to consider relaxing local sourcing requirements in single brand retail trade as well as liberalising financial services sector, while New Delhi wanted Washington to expedite the conclusion of negotiations on a proposed bilateral social security pact for the benefit of Indian IT workers.
“Liberalising the retail, financial services and professional services sectors would help create an open, non-discriminatory and predictable regime that enhances the development of those markets and the quality of life of the Indian people,” U.S. Trade Representative Michael Froman said speaking at the University of Chicago Centre here.
On the U.S. demand to ease local sourcing norms in single-brand retail trade, India said the recent FDI reforms provided relaxation in local sourcing norms in specific cases. Both sides held a ministerial-level meeting of the bilateral Trade Policy Forum (TPF) – the premier forum to discuss and resolve trade and investment issues.
India wanted the U.S. to look into the issue of the higher visa fees as well as into the delay in reaching an agreement on totalisation. According to India, the absence of such a pact is a burden for the Indian software sector (who send professionals to the U.S. on projects) as they have to shell out more than $1 billion per year to the U.S. Government towards social security.
A joint statement on the TPF said: “The importance of e-commerce, retail and direct selling in facilitating trade in goods was acknowledged by both sides.” Both sides also agreed to collaborate in traditional medicine, as well as to address market access issues and trade costs for pharmaceutical products and medical devices.
Published - October 21, 2016 01:19 am IST
