Presentation on theme: "ITRN 702 JINA YU US and India Trade and Investment."— Presentation transcript:
ITRN 702 JINA YU US and India Trade and Investment
Overview Key US interests Mutual economic interests US desire for expanded engagement and cooperation The US and India are building a strategic partnership that is underpinned by our shared interests, our shared values as the worlds two largest democracies and close connections among our people Barak Obama May 2010. Committed to establish[ing] a true strategic partnership with India, increase our military cooperation, trade and support democracies around the world Fmr. Secretary Clinton.
U.S. national interest, policy and politics. Economic Interests Huge market potential Burgeoning middle class Fighting trade barriers (quotas, subsidies, restrictions on FDI) Security Interests Strategic location in SE Asia, key focus in US foreign policy attention Support for India having permanent seat on the UN Security Council
FDI Deterrents FDI Hurdles that must be addressed Corruption and bureaucracy Infrastructure: traffic, electricity, poverty Royalties as a result of limited ownership stakes Limited market penetration
Policy Proposal Renew Trade Promotional Authority (Fast track) Authority expired in 2007 Bilateral Investment Treaty Encourage open transparency Foster greater FDI flows Movement towards a free trade agreement
Conclusion Pros Negotiate to reduce tariff and non tariff barriers and lift restrictions on FDI. US would gain greater access to Indias domestic market Cons Human rights violations Inadequate IP rights protections, India 63% piracy rate Ultimately what America seeks is a level playing field for its companies, where to cost and quality of their products determines whether or not they win business. In seeking a level playing field we are merely asking for the same treatment foreign companies and investors receive in America. US Embassy 2011
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