bilaterals.org logo
bilaterals.org logo

US-India

The governments of the United States and India have been talking about negotiating a bilateral investment treaty for several years. The idea of a broader trade agreement between the two countries has often been mentioned as a longer term goal.

Bilateral relations between the two powers over the past decades have been complex. During the Cold War, India was non-aligned but friendly with Russia. Since 1991, India took a major turn by adopting neoliberalism as an economic frame for the country’s "development" strategy, and relations with the West subsequently thawed. Starting in 2005, India and the US signed a series of major bilateral cooperation agreements including the areas of defence, agriculture and food security, nuclear technology, energy, education, etc. Many of these initiatives met strong criticism at home in India as they frequently create conditions that benefit global capital and elites at the expense of local communities, especially in the rural areas.

In this process, since 2008, the governments of both countries also committed to signing a bilateral investment treaty, but this is taking some time. In 2014 and 2015, India reviewed its earlier "bilateral investment protection and promotion agreements" (BIPPAs) and decided to draw up a model "bilateral investment treaty" (BIT) to replace those BIPPAs. The Indian model BIT is still under debate but it departs from the US model BIT in several respects. Thus it could be a challenge to come to a common agreed text. But US business associations, which include many major TNCs among their members, are pushing hard to finalise a deal. Civil society organisations both in India and the US have been mobilising against the deal.

In parallel to this, India has been revising its policies on foreign direct investment, notably by opening up the country to foreign investment in multibrand retail (e.g. Walmart or Tesco), and on taxation.

US-India trade, in the meantime, has grown massively, with the US having a huge services trade deficit, much of which reflects the growth of outsourced US jobs to India.

Recommended reading:
 Kavaljit Singh, "The India-US Bilateral Investment Treaty: Not an easy ride", January 2015

Last updated: 21 August 2015
Photo: La Via Campesina


US needs to push range of economic issues with India: Kenneth Juster
The US must push a range of economic issues with India, including intellectual property, standard and non-tariff barriers, President Donald Trump’s nominee to be the next envoy to India has told lawmakers.
US junks Bilateral Investment Treaty talks
Talks deadlocked on investor dispute settlement.
India, US and a five-point plan
Modi and Trump must build on convergence between their nations’ interests.
India to US: Will not tighten IPR rules beyond TRIPS mandate
India and the US continued to differ on the issue of intellectual property rights (IPR) norms in their bilateral trade and investment policy discussions
BIT deal with US can help India gain APEC membership
American industry is keen that India and the US conclude their much-awaited Bilateral Investment Treaty (BIT), which it believes will strengthen India’s chances of membership in the Asia-Pacific Economic Cooperation bloc.
India, US to try narrow differences in BIT
India and United States will try to narrow differences on a proposed Bilateral Investment Treaty (BIT) next week, although an early breakthrough seems unlikely.
India’s narrow BIT norms holding up trade pact
The new model text on the basis of which India is negotiating its Bilateral Investment Treaties (BIT) is making it difficult for America to hold bilateral talks on the proposed India-US BIT
US wants bilateral treaty modelled on India’s FTAs with Japan & South Korea
A draft copy of the proposed India-US Bilateral Investment Treaty is not ambitious enough to attract American investors to India, feels Washington
US asks India to step up investment treaty talks
The US government has again pushed India to expedite negotiations on the proposed Bilateral Investment Treaty (BIT).
At Obama-Modi meeting in New York, MSF urges India to protect affordable medicines for millions
Médecins Sans Frontières/Doctors Without Borders (MSF) warned that US pressure for India to change its intellectual property policies could result in millions of people around the world losing their lifeline of affordable medicines.

    Links


  • US-India Business Alliance
    The US India Business Alliance (USIBA) was incorporated in response to the extraordinary growth of US-India trade and investment, which despite its tremendous growth, pales in comparison to US-China trade