The International Trade Commission should investigate India’s unfair trade practices that discriminate against U.S. exports and investment, according to a letter recently written by several key members of Congressional trade-related committees.
Senate Finance Committee Chairman Max Baucus (D-Mont.), Ranking Member Orrin Hatch (R-Utah), House Ways and Means Committee Chairman Dave Camp (R-Mich.) and Ranking Member Sander Levin (D-Mich.) sent a letter in August to Irving Williamson, the chairman of ITC, requesting the investigation.
Exports to India are low given its large market size, the letter said. The members asked Williamson to describe India’s current policies that restrict trade and violate intellectual property rights. Additionally, the letter asked for findings on the effect India’s trade policies have on U.S. exports, businesses and jobs.
India’s tariff and fee system is non-transparent, complex and maintains substantial tariff and non-tariff barriers to U.S. goods and service participation, according to the letter. The letter also said India has an inadequate process for enforcing copyrights.
“Despite the widespread evidence of these existing and anticipated barriers to U.S. exports and investment in India, the U.S. government has not conducted a comprehensive economic analysis of the effect of Indian trade policies on the U.S. economy and U.S. jobs,” the letter said.
U.S. exports of goods and services to India were at $22.3 billion in 2011, a figure the members said was low.
“Similarly, recent data indicates that U.S. private commercial services exports, sales of services by majority U.S.-owned affiliates and U.S. foreign direct investment in India were also low,” the letter said.