Limited FTA with US

India and the US will discuss the possibility of a bilateral investment agreement or a limited free-trade agreement (FTA) in services next month at the first meeting of the recently constituted United States-India Trade Policy Forum.

Officials told Business Standard today that the issues were expected to figure during the meeting of the forum to be chaired jointly by Commerce and Industry Minister Kamal Nath and US Trade Representative Rob Portman, who would be visiting India for the first time after assuming office.

While a date for the meeting is yet to be finalised, India has proposed the meeting be held either on September 12 or September 22 in New Delhi.

The two sides are expected to also discuss WTO issues in addition to several other bilateral issues, including trade facilitation and the container inspection initiative.

"The two sides are expected to discuss the current state of affairs at the WTO and measures to resolve the deadlock on issues like agriculture," officials said. The formation of the forum was announced during the visit of Prime Minister Manmohan Singh to the US last month.

The forum is mandated to take forward the agenda of the US-India Working Group on Trade, which was established in 2000. The forum will consider trade and investment policy concerns of both the governments.

Subjects to be discussed could include: tariff and non tariff trade barriers; foreign direct investment; subsidies; customs procedures; standards, testing, labelling and certification; intellectual property rights protection; sanitary and phytosanitary measures, government procurement; and services.

"The forum offers the opportunity to our governments to work together towards a successful outcome of the Doha Round," officials added.

The US has already entered into bilateral investment treaties with Sri Lanka and Bangladesh. In addition, it has Trade and Investment Framework Agreements with Afghanistan, Pakistan and Sri Lanka.

India, on the other hand, has bilateral investment protection agreements with several countries. This includes the just-concluded agreement with Singapore. It is negotiating investment protection agreements with the European Union and Canada.

US AND THEM

Issues to be discussed include limited FTA in services, tariff and non-tariff trade barriers, and Customs procedures

Also on agenda, the current state of affairs at the WTO and measures to resolve the deadlock on issues like agriculture