Alleging that Indian actions over the past one year has been discriminating against US exports and sales, an association of top American business groups has asked the Obama Administration to raise its concerns with New Delhi during Secretary of State John Kerry’s visit next week.
“Today, we are calling on the Obama administration to raise concerns immediately at the highest levels of the Indian Government and to press for real results,” Linda Dempsey, Vice president, International Economic affairs for National Association of Manufacturers told reporters during a conference call.
Announcing the launch of Alliance for Fair Trade with India (AFTI), Dempsey said the India visit of Secretary of State John Kerry next week is a critical opportunity to take this action.
The alliance is co-chaired by the National Association of Manufacturers and the US Chamber of Commerce’s Global Intellectual Property Center.
“AFTI members want a level playing field and a fair shake in India. We want India to end its unfair trade practices and to make sure those trade practices are not repeated in the future, she said.
“We hope and expect the Indian Government will respond positively and will work constructively with the business community to address these concerns,” she said.
“But if India does not act quickly to comply with its international obligations, we believe that all trade and diplomatic options must be on the table. To have the kind of strategic partnership we all want, India must play by the rules,” Dempsey said.
Dempsey said the alliance is asking the administration and particularly Kerry to not just have dialogue but to achieve real concrete results when he meets with the Indian Government next week.
“This is a serious issue. This is about jobs for NAM. This is about manufacturing. This is an issue that’s gone on for far too long. And we need our Government to be very clear with the Indian Government that these actions have to stop now and, uh, to turn back, uh, to the actions that have been taken over the last year to 18 months,” she said.
“There have always been long standing concerns with India’s IP systems. But in the last 18 months, it seems to have been a rapid deterioration. And there are a few very, very specific examples here from the pharmaceutical industry,” said Mark Elliot, Executive Vice President of the GIPC.
“In simple terms, India is the international out wire. This trend clearly calls into question the country’s commitment to promoting innovation and continue its path toward a knowledge based economy. It is well-documented that strong IP systems lead to strong foreign direct investment,” he said.
“For these reasons, we are hearing more and more from multiple industry groups that the erosion of intellectual property is a key factor. With respect to decisions being made, we’ve got an investment in India,” Elliot said
He said that the Alliance of Fair Trade in India is a much needed coalition and brings together a range of industries who care about a trading relationship with India.
India, Dempsey said, is taking actions that will undermine its own growth, in terms of the innovation and research and development as well as attracting foreign investments, as well as growing the types of innovative manufacturing that all care about in the United States and around the world.
Elliot said the international pharmaceutical community, look at India as the bad operator, as the out wire here, and they react to that.
“I think people can interpret that to mean whatever that they want to interpret that to mean. But quite simply, India is the out wire. This is the only place it’s happening.
That’s why you’re getting the reaction that you are from the business community,” he said.
Meanwhile, an eminent American expert predicted that no significant commitments would be made during Kerry’s talks with External Affairs Minister Salman Khurshid.
“There are no significant signs that either side is prepared to make major commitments to reshape, renew, or strengthen the nascent strategic partnership during the upcoming meetings.
“I suspect we will see many smaller commitments but few profound deliverables,” Richard M Rossow, director for South Asia at McLarty Associates, wrote for the National Bureau of Asian Research for the powerful Senate India caucus.
In fact, given that Prime Minister Manmohan Singh is expected to visit Washington in September-October, any big-idea if any, would be saved for the Singh-Obama summit, he said.
“Overall, expectations for the Strategic Dialogue are fairly modest, which is not necessarily a bad thing. We may see a slight relaxation in how the local content rules will be applied in India, an expansion of support on both sides for educational linkages, and perhaps a pledge to review natural gas export to India,” Rossow said.
“But it will be difficult to do anything to rival the strategic depth of the nuclear deal announced in July 2005.
“The wild card is whether an external factor-such as the Chinese military’s frustrating incursion into disputed border territory in May-will whet India’s appetite to seek deeper US commitments on strategic ties, and if the United States is prepared to reciprocate,” he said.
Meanwhile, the Indian Ambassador to the US, Nirupama Rao met Deputy Secretary of State William Burns to give final touch to the preparations.