THE United States is keen to expand trade with India, a US official said on Monday (November 24), after the two countries settled a bitter row over food subsidies and President Barack Obama announced he would visit in January.
US Trade Representative Michael Froman was speaking in New Delhi before the first meeting in four years of a key trade panel on which representatives from the world's largest economy and the emerging market giant sit.
“We believe in the promise of India,” Froman told a business audience. “Let's deliver on that promise.”
Two-way trade between the US and India currently stands at $100bn and the countries aim to boost the figure to $500bn but have set no deadline.
The nations reached a breakthrough earlier this month in a food subsidies spat that threatened to derail a landmark World Trade Organization pact to ease global trade barriers.
By easing the cost of doing business, the Trade Facilitation Agreement – set to be approved by the WTO's General Council soon – will be “win-win” for developed and developing nations, Froman said.
“Some suggest the Indian and US breakthrough (unlocking the global deal) may have saved the multinational trading system,” Froman said.
In any event, the compromise “could not have been possible without the personal engagement” of Prime Minister Narendra Modi and Obama, said Froman.
The two men are said to have struck up a good rapport during Modi's hugely successful US visit last month.
“They gave our partnership a mantra 'further together we go',” Froman said.
