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India, US finalise terms for trade talks

Neena Haridas in New Delhi

The United States thinks India is serious business. That is what William Daley, commerce secretary, United States, impressed upon the Indian industrialists and businessmen at the interactive session organised by the Confederation of Indian Industry or CII here today.

Daley made it clear that the issue of trade and investments between India and United States is not just a state matter and should be seen in the light of public-private sector initiative, which means faster reforms and efficient bureaucracy.

Daley said, "The last thing I want is to have a discussion on trade and investment between governments without having our businesses involved. To me, any meaningful commercial dialogue must be based on experience, concerns and vision."

"Minister Murasoli Maran and I are here to see how we can increase business across countries by launching the Indo-US Commercial Dialogue."

Under this process, the two nations will have three cabinet level dialogues.

The first will focus on finance and investment to be led by the US Secretary of the Treasury and the Indian minister of finance.

The second will deal with co-operation on trade and investment policy, led by the US Trade Representative and the Indian Prime Minister's Office.

The third will be commercial dialogue involving the private sector.

Daley said, "We hope the dialogue will provide for a regular exchange of views and a way to identify issues, where some further study might enhance understanding and co-operation. I think, the franker we are the more we will get out of this. And I am not a big fan of bureaucrats. So I am not interested in developing a process, than creating a new structure.

"I am also glad that minister Maran agrees with me that the dialogue should be a private-private sector initiative. We have redoubled our efforts to introduce new companies to Indian companies and the Indian market and I don't think the remaining economic sanctions will be a hindrance to this effort," he added.

Daley said though the economic sanctions imposed on the India after the nuclear tests in May 1998 put many of the initiative aimed at promoting Indo-US trade on hold, the US President's visit now has paved the way for better ties.

He said, "With the President's visit, we are optimistic that this hiatus is coming to an end. There is tremendous potential for commercial co-operation between the two countries. But India has to further deregulate and give private sector a freer rein."

"It would give Indian companies greater access to capital and enable US companies and US equipment and technology to contribute to this process. Only this will spur more growth -- creating more better jobs for more Indians," he opined.

Daley also subtly suggested that India should downsize its government. He said, "The greatest challenge for governments everywhere in the world is to deliver services more efficiently. Under President Clinton, we have downsized the government so it is as small as it has been in 40 years. And to be honest, nobody has missed any of the former federal workers."

Touching briefly on the failure of the Seattle Round of WTO talks, Daley said, "We don't want the WTO standing still. It must find ways to increase trade otherwise everybody will lose. India, the US and other trading partners need to work together to make sure our international system of trade serves everyone's interests. And we need to work together to ensure the long term benefits of our growing interconnectedness far outweigh any short-term costs."

Identifying India's prowess in knowledge-based industries as the growth driver of world economy, Daley said, "Today there is no product in this universe that cannot be sold on the Internet. India and the US know how important information technology or IT is to our economy. One-third of the growth of our economy, the longest expanding economy in our history can be contributed directly to IT. And IT means just as much to India.

"I am impressed that IT is truly par of a new economy in India -- not stifled by the heavy controls and restrictions that were trademark of the old ways."

Meanwhile, India's industry minister Murasoli Maran said the targeted Indo-US trade in the next five years is $25 billion. "Though India's biggest trading partner today is the US, Indian imports in US is barely 0.7 per cent of the total US imports. This is far below the potential," he lamented.

Earlier, Maran Daley signed the terms of reference which spell out that the dialogue will be a co-operative undertaking to facilitate regular discussions between India and the US business communities as well as government to government meetings.

The pact was signed in pursuance of the joint vision statement, signed by Prime Minister Atal Bihari Vajpayee and US President Bill Clinton, which called for institutionalising dialogue and engagement for enhanced co-operation across a broad spectrum of areas.

With additional inputs from UNI

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Bill Clinton's India visit: full coverage@rediff.com