Indian Elections Influenced U.S. Decision on Special Trade Law

WASHINGTON: The desire of the Obama Administration to start its relationship with the new Indian government after the general elections on a positive note is believed to have been one of the major reasons for the U.S. Trade Representatives not putting India on its punitive Priority Foreign Country list. This was despite intense pressure and lobbying efforts in this regard by a section of the influential American businesses.

By taking such a decision, it is understood that the long-term strategic relationship with India, which U.S. President Barack Obama has described as the defining partnership of the 21st century, prevailed over the short-term goal of addressing the issues of alleged violation of intellectual property rights inside India and Indian policies with regard to pharma sector, which has angered the strong American pharma lobby and a section of the U.S. lawmakers.

For not naming India as a Foreign Priority Country, the Obama Administration is expected to receive a lot of flak from the pharma sector and also at the Hill. U.S. Trade Representative (USTR) Mike Froman is scheduled to testify on the Hill tomorrow, wherein he is expected to defend the Administration's decision on this issue. In a statement, the USTR said in the coming months, it will redouble its efforts to seek opportunities for meaningful, sustained, and effective engagement on IP-related matters with the "new government', including at senior levels, the report said.

"India remains on the Priority Watch List in 2014. In making this determination, the U.S. recognizes not only the concerns..., but also the critical role that meaningful, constructive, and effective engagement between India and the U S should play in resolving these concerns," U.S. Trade Representative said in the 2014 Special 301 report. It is learnt that Froman, on taking such a decision, argued that the Administration would like to make sure that whoever the new government is can be engaged in a constructive manner.

Read More: World Bank: India Became the Third-Largest Economy

New Foreign Trade Policy To Focus On Ways To Boost Exports