South Asia offers immense opportunities to the US, a top Trump administration official has said while ruing that the region remains the least economically integrated in the world.
Alice Wells Acting Assistant Secretary of State for South and Central Asian Affairs, told a Congressional Subcommittee that South Asia is the fastest growing region in the world with almost half of the population under the age of 24.
This drives economic growth -- expected above 7 per cent from 2018 onwards -- along with unprecedented opportunities for trade, Wells said.
"South Asia remains among the least economically integrated regions in the world and non-tariff barriers to trade are a major cause," Wells told the subcommittee in a written submission yesterday.
Scheduled to testify before the House Foreign Affairs Subcommittee on Asia and the Pacific on "Maintaining US Influence in South Asia: The FY 2018 Budget," Wells in her written testimony said currently, it takes up to 20 separate authorisations for merchants to import and export goods between India and Bangladesh.
"Fortunately, the countries of the region have prioritised increasing regional trade and investment, and during the recent Foreign Ministers meeting of the Bay of Bengal Initiative for MultiSectoral Technical and Economic Cooperation (BIMSTEC) in Kathmandu, the seven-member states laid the groundwork for stronger regional cooperation on a host of economic and commercial issues," she said.
"Given this momentum, we are focused on facilitating stronger economic linkages between the countries of South Asia to encourage private-sector led economic growth and promote prosperity and stability in the region," Wells said.
South Asia matters to the United States, Wells told lawmakers.
"Nowhere are those opportunities greater than in the growing road, air, and sea links between India, Bangladesh, Burma, Nepal, and Sri Lanka and the rapidly expanding ASEAN economies," she said, adding that 70 per cent of the infrastructure required to sustain and support the India of 2030 has yet to be built.
This will be an enormous opportunity for US companies that have the technology and expertise.
For example, Boeing alone foresees a market for 2,000 commercial aircraft in South Asia over the next 20 years, she said.
The region's growth has potential to create a half billion new customers for US businesses in consumer goods, financial services, technology, infrastructure, the health sector, energy, education, tourism, and more.
Wells said in 2014, the United States exported more than USD 22 billion worth of goods to South Asia, making US the region's number one trading partner.
These exports support thousands of jobs in many of your districts and as the region rises over the next 15 years, thousands more are likely to be created as a result.
"We are committed to increasing market access for US companies throughout the region in support of that important goal," she said.
"In the coming years, the countries of South Asia will likely assume an ever-greater role and importance in global affairs," Wells said as she sought support from Congress.
"The policies and programmes supported by our FY 2018 Request will ensure that the US continues to be a leader in the region by promoting economic connectivity and growth, advancing good governance and democracy, and ensuring regional security and stability."
"With smart, focused engagement, we can ensure that South Asians and Americans alike continue to reap the benefits of stability, security, and prosperity," Wells said.
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