From state visit to a more robust trade relationship

Syllabus: Bilateral Relations

Context

  • Indian PM State visit to Washington on June 22, 2023.
  • Talks on defence trade to emerging technologies, such as in Artificial Intelligence and space exploration

A Central Role for trade

  • Trade relationship between the two countries, is growing — surpassing U.S.$120 billion — but it continues to underperform relative to the sheer potential
  • In the last two years, the Ruling government has inked new free trade agreements (FTAs) with the United Arab Emirates and Australia and launched or reinvigorated negotiations for parallel deals with the European Union, the United Kingdom, and Canada.

The U.S Approach

  • Discovered a better approach to trade, emphasising resilient supply chains, reshoring or friend-shoring, and prioritising labour rights and climate-friendlier production over craven and mistaken globalisation.
  • resolving six disputes under the World Trade Organization (WTO)
  • Even in the sensitive area of agriculture, India has shown surprising readiness to gradually open its market when offered opportunities to win concessions in return through FTAs.
  • S. and India have been able to agree to transactional concessions in their respective markets (e.g., mangoes and pomegranates for India in exchange for cherries, hay and pork for the U.S.) through the bilateral Trade Policy Forum (TPF) even without an active FTA negotiation
  • Often-mentioned target of $500-$600 billion in bilateral trade by 2030 can easily be attained and surpassed

About ChinmayaIAS Academy - Current Affairs

Check Also

HEAT WAVES

A heat wave is a high temperature condition that can be lethal to the human …

Leave a Reply

Your email address will not be published. Required fields are marked *

Get Free Updates to Crack the Exam!
Subscribe to our Newsletter for free daily updates