The India-US trade conversation is always a tricky territory to navigate. But the needle can be moved when both sides talk to each other, rather than at each other — a fact that US trade representative Kathreen Tai literally discovered on her dinner plate during her recent visit.
She was served three dishes at her banquet, each bearing a message — one, signaling possibilities when minds and hands work together from both sides; two, the problem of usual cussedness that lowers morale; and third, the taste of success when both get it right.
The unusual star in the first category was Indian wild caught shrimps, prohibited for import under US law but on Tai’s plate — in her Malabar shrimp curry. US rules are stringent to ensure that sea turtles are not affected in wild harvesting of shrimps. They insist that exporting countries must have a programme “governing the incidental taking of relevant species of sea turtles”.
With roughly a $2 billion business in sight, it was decided to involve the US National Oceanic and Atmospheric Administration, which has worked with relevant Indian authorities to develop a ‘turtle exclusion device’ that can be attached to trawlers to leave out the turtles while just catching the shrimps. With trials done, the way westwards seems brighter for Indian wild caught shrimps.
Tai’s second message came from grapes served with Angoori Rasmalai. Classified as table-top grapes, these too are not allowed into the US. Why? Insiders say Indian grapes meet all necessary standards but, it appears, that the request for market access is in the US cold storage as probably a kind of bargaining chip. If that be so, then it might appear tad petty, going by the message from the third item of significance on the menu, blueberry shrikhand.
The US had been pushing India to lower tariffs on American blueberries. New Delhi finally slashed it as a consequence of a larger strategic call, agreed during PM Narendra Modi’s US visit, to bilaterally settle all outstanding WTO disputes. Blueberries benefited and found their way to the banquet table.
The menu for Tai reflected the changing grammar in conversation on commerce and trade that, of course, will have to be tested on other critical fronts. Most of all on building automaticity and predictability in the equation, thus reflecting the political and strategic significance of both countries in their respective systems.
What does this mean in practical terms? Take the question of high-performance computers — digital computers, electronic assemblies and related items required across sectors. These items still need to pass through a lengthy US commerce department approval process because India continues to be listed as a ‘Computer Tier 3’ country following the 1998 National Defense Authorization Act, which imposed restrictions on India due to the Pokhran nuclear tests that year.
Other departments have over the years, by way of legislation or policy, removed these restrictions. The Pentagon recognises India as a ‘major defence partner’, enabling transfer of high-end sensitive technology to India. Last January, the US agreed to iCET (Initiative on Critical & Emerging Technology) with India, which paves the way for an umbrella partnership in high technology areas from space and defense to semiconductors and AI.
Yet, India is a Tier 3 list country for high-performance computers. A similar situation persists with the Arms Exports Control Act controlled by the US state department. This is in dissonance with the larger frame of Indo-US relationship, requiring legislations to place India in a category fitting of a strategic partner where approvals are deemed automatic or as the experts say, processed under a presumption of approval.
India also wants to join the US Critical Minerals Initiative, enjoying a status of the sort the US has extended to Japan, exempting it from export duties and accessing tax benefits under the US Inflation Reduction Act. To find ways, amid domestic pressure, to take this forward will be a big boost for securing critical supply chains and reducing dependencies on China.
The US, for its part, too has valid concerns on ‘good regulatory practices’, which essentially boils down to introducing predictability in the business environment. The overnight government decision to curb laptop imports was a case in point. Tai took up the matter with commerce minister Piyush Goyal.
The list will keep growing as both countries draw closer, bound by similar security and geopolitical concerns. But what emerges from the story of Indian wild caught shrimps is that a creative solution to save turtles and trade shrimps is always round the corner.
By Pranab Dhal Samanta
https://economictimes.indiatimes.com/epaper/delhicapital/2024/jan/22/et-poli/serving-a-message-creativity-on-indiaus-platter-can-dish-out-potent-solution/articleshow/107035876.cms
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