'We can chart bilateral relations despite Chinese dominance'

Chinese growing dominance in the global trade is definitely a matter of concern for both the US and India and it would severely affect relations between the US and China and India and China. However, the visiting US Commerce Secretary Gary Locke in an exclusive interview told Business Standard “Despite such a situation, the US and India have an ability to chart their own bilateral relationship and make all efforts to grow. Bilateral relationship between India and the US is the best and there is ample scope to grow it to new heights especially when the President Barack Obama and Prime Minister Manmohan Singh enjoy coordial relationship.”

On US-China relationship is concerned, US is concerned over its trade imbalance with China. “Us wants their companies will be able to sell more in China. At present due to restrictions they are not able to do so. Trade barriers putting up by China are creating more imbalances and we expect they would be eased out,” Locke said. He admitted that this was also affecting India. “However, it will not desist India and the US from increasing trade and investments,” he noted.

Locke’s statement is crucial especially when trade between India and China is of the order of $434 billion and it is lopsided $262 billion in favour of China.  In case of India it is the US’s 14th largest trade partner. American exports to India in the first six months is of the order of $14.6 billion up 14 per cent compared to the corresponding period of the last year.

On the removal of export restrictions, Locke reiterated that it was high on the US President’s agenda and there is a possibility of announcement in this regard. “The United States was moving to loosen controls on many commonly available high-tech goods,” he said.
 
On furthering bilateral trade and investments between India and China, the Commerce Secretary asserted that the opportunities are unlimited. “I do not want to give you any numbers here but there is huge potential which can be tapped by both the countries. India’s booming economy, rising middle class, its programmes to boost modernization and increase standards of living of many offer ample opportunities for the US to further increase trade and investments. US sees bigger opportunities in India’s Infrastructure, clean energy, agriculture, health and medical technologies apart from defence and military sector. On the other hand, India can tap similar opportunities in the field of information technology and communications, clean energy in the US,” Locke informed.
 
Locke said the US has concerns over India's policies in the field of  financial services, clean energy and telecom sectors.  On clean energy, Locke said, "We are concerned that there are some requirements that various clean energy components, whether wind turbines or solar equipment, must have been largely manufactured in India."

The commerce secretary acknowledged Indian industry's concerns about the recent increase in H-1B visa fees. However, he said it would be up to the US Congress to take any remedial action.

On differences over Doha talks, Locke said the US support early conclusion of Doha round. “Developing countries are pressing for more access for agricultural products in the US.  There are fast growing developing countries such as China and Brazil and there other categories of developing countries. Similar yardsticks cannot be applied for these two sets of developing countries.”