Obama, Modi Vow to Chart Path Forward on Trade Facilitation
The U.S. and India may "soon" be able to reach compromise on implementation of the Trade Facilitation Agreement, said Indian Prime Minister Narendra Modi in remarks following two days of bilateral negotiations in Washington, D.C. India is committed to trade facilitation, but will continue to demand a change in agricultural subsidy rules, said Modi, while declining to discuss what World Trade Organization concession India prefers. In the lead-up to Modi’s visit, trade analysts said they did not expect the meetings to yield tangible outcomes on trade disagreements (see 14093002).
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Meanwhile, the two leaders committed in a joint statement to fuel growth in trade between the two countries, which has increased five-fold since 2001. “The leaders discussed their concerns about the current impasse in the World Trade Organization and its effect on the multilateral trading system, and directed their officials to consult urgently along with other WTO members on the next steps,” said the statement. The Obama administration pledged to assist India in developing its infrastructure in order to improve the Indian investment environment and reduce poverty in the country. Obama and Modi also said they will create an Intellectual Property Working Group, which will meet on an annual basis with the hopes of bringing the two sides closer on their IP positions. Many U.S. industry representatives rail against poor IP protections in India, particularly the pharmaceutical sector.