India, US could have FTA in long term: US trade official
Zee News, 5 March 2006
India, US could have FTA in long term: US trade official
New Delhi, Mar 03: India and the United States could look into the possibility of a free trade agreement in the long term to boost bilateral economic relationship, a top US trade official said today.
"I think from a long term point of view, an FTA could be looked into and in the meanwhile from a medium term perspective the two countries should take steps which act as building blocks for enhancing our relationship," deputy US trade representative Karan Bhatia said on the sidelines of the India-US CEOs forum here.
The US wanted a more vigorous relationship with India, Bhatia said, adding the trade policy forum, which was set up last year, was working towards strengthening bilateral ties.
In the medium term, the two countries should work on steps such as liberalising industrial tariffs and encouraging exports of farm products, such as that of mangoes to US, he said.
Bhatia, however, said right now it was too premature to think about an FTA and clarified that the US government was not talking with India on the issue.
The US companies were interested in the services and opening up the sector would benefit both the countries, he said, adding India could become a global centre for financial services but it required insurance and banking reforms.
The two countries were also working together for success of the WTO trade negotiations, he added.
Businessmen from both sides have in the past suggested signing an FTA particularly to boost trade in services. The total merchandise trade between the two countries is about 25 billion dollars at present and is likely to touch 40 billion dollars in the next two-three years.
Bureau Report
