1. ITRN 702 JINA YU US and India Trade and Investment

2. 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.

3. 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

4. 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

5. 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

6. 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

7. Sources Ahearn, Raymond. Rising Economic Powers and US Trade Policy. 3 December 2012. http://www.fas.org/sgp/crs/row/R42864.pdfhttp://www.fas.org/sgp/crs/row/R42864.pdf Economist. Foreign Companies in India: The Rewards of Royalty. 26 Jan 2013. http://www.economist.com/news/business/21570737-despite-what- you-might-hear-some-foreign-firms-india-are-prospering-rewards-royaltyhttp://www.economist.com/news/business/21570737-despite-what- you-might-hear-some-foreign-firms-india-are-prospering-rewards-royalty Kornstadt, K. Alan. India: Domestic Issues, Strategic Dynamics, and US Relations. 1 Sept 2011. http://www.fas.org/sgp/crs/row/RL33529.pdfhttp://www.fas.org/sgp/crs/row/RL33529.pdf Politi, James. US revises investment treaty approach. 20 April 2012 http://www.ft.com/cms/s/0/50a4f600-8b23-11e1-bc84- 00144feab49a.html#axzz2MKCXLmXG http://www.ft.com/cms/s/0/50a4f600-8b23-11e1-bc84- 00144feab49a.html#axzz2MKCXLmXG Singh, Hemant and Karl Inderfurth. Full embrace of Indias rise central to US foreign policy. 19 Feb 2013. Op Ed. http://articles.economictimes.indiatimes.com/2013-02- 19/news/37179737_1_investment-treaty-bilateral-investment-india- reviews http://articles.economictimes.indiatimes.com/2013-02- 19/news/37179737_1_investment-treaty-bilateral-investment-india- reviews