[International Centre for Trade and Sustainable Development, Link] US-India trade ties have continued to worsen in recent weeks, with Indian Trade Minister Anand Sharma accusing Washington this week of “high and unacceptable protectionism.” The remarks from New Delhi’s top trade official comes after months fraught with tension, with the two sides openly sparring on topics ranging from renewable energy policies to patent protections.
In his remarks, Sharma defended India’s compliance with the WTO’s Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS). Washington has repeatedly said that New Delhi’s policies on patent protections effectively put US pharmaceutical companies at a disadvantage compared to Indian producers of generic drugs. Sharma has denied this, saying that what the US wants from India goes above and beyond TRIPS’ terms – adding that India “will never accept” TRIPS-plus style policies.
Another area of disagreement between the two sides has been India’s domestic content requirements for solar energy products, which led Washington to file its second complaint with the WTO on the subject last month. (See Bridges Weekly, 13 February 2014)
The US claims that these requirements not only make it difficult for its exports to enter the Indian market, but also hinder the spread of renewable energy resources globally. New Delhi trade officials have denied these claims, asserting that national policy is in full compliance with its WTO obligations.
In what analysts have said is another sign of worsening tensions, Indian government officials also decided last month to block probes by the US International Trade Commission (USITC) into their domestic trade practices, saying that bilateral disputes should instead be reviewed in the WTO context.
ICTSD reporting; “India hardens stance against U.S. protectionism ahead of visits,” REUTERS, 4 March 2014; “Anand Sharma accuses U.S. of trade protectionism,” THE HINDU, 4 March 2014.
