President Obama will underscore the importance of India as a growing market for US exports

President Obama will underscore the importance of India as a growing market for US exports - and announce some big commercial deals - when he travels to Mumbai and New Delhi next month, White House officials said yesterday.

Trade will be at the top of the agenda on the first day of the President's trip, when he meets with US and Indian business officials. Mr. Obama will deliver a major address on the commercial relationship that same day - November 6 - before the US-India Business Council.

Growing trade with India is crucial to the President's goal of doubling US exports in five years, the officials told reporters yesterday. “We believe that India has a hugely dynamic and growing market and we want to discuss opportunities for how we can deepen our economic relationship,” Deputy National Security Advisor for Strategic Communications Ben Rhodes said.

The officials declined to discuss details of the commercial agreements the President hopes to announce.

Although President Obama has lately spoken out against the “outsourcing” of US jobs overseas to countries like India, Deputy National Security Advisor for International Economic Affairs Mike Froman said the President sees tremendous potential in India for US exports.

Indian Investment

US exports have quadrupled over the last seven years to about $17 billion, while service exports have tripled to about $10 billion a year. Mr. Froman noted that Indian companies are the second-fastest-growing investors in the United States, currently supporting about 57,000 US jobs.

India would like to see a restart of negotiations on a Bilateral Investment Treaty, which remain on hold while the Administration crafts a new model BIT.

New Delhi is hoping that President Obama will use his first state visit to announce that Washington will ease export controls restricting some sales of high-technology dual-use products. The Administration officials declined to say whether an announcement is likely, saying that talks are still ongoing. But Undersecretary of State for Political Affairs William Burns noted that the Administration is in the process of updating its export controls and wants to make sure “India is treated as a partner and not as a target.”

The White House officials praised India for signing yesterday the Convention on Supplemental Compensation, which will pave the way for US companies to participate in Indian civil nuclear development under the bilateral agreement. The convention will help ensure that international standards apply and that US companies have a level playing field on which to compete, Mr. Burns said.

Washington Trade Daily
October 28, 2010

US EXPORT COUNCIL PROVIDES ASSISTANCE TO US COMPANIES SEEKING ACCESS TO HIGH GROWTH MARKETS OVERSEAS. http://usexportcouncil.com/