India is one of the world's fastest growing economies and therefore provides one of the biggest opportunities for U.S. tech firms for exports. A new policy being enacted by the Indian government could hurt trade with the United States, trade associations have warned the Obama administration.
The Indian government plans to require that domestic electronic goods be given preferential treatment in its purchases, and to use its regulatory powers to force government licensees to follow suit with the policy. This plan is clearly in conflict with India's obligations under the World Trade Organization.
The BSA, and the Telecommunications Industry Association have written to U.S. Trade Representative Ron Kirk, Secretary of State Hilary Clinton and Commerce Secretary John Bryson with their concerns.
The warning will not fall on deaf ears either. The United States' trade deficits have reached appalling levels in recent years, and the trade gap in advanced technology was approaching $100 billion last year, according to Reuters.
The Obama Administration has already filed a case with the World Trade Organization against India due to its ban on imports of U.S. poultry meat and eggs. The U.S. Government rejects the Indian claim that the ban is in place to prevent the spread of bird flu, saying it is not based on sound science.
Written by: James Delahunty @ 7 Mar 2012 22:47
