US service industry backs Trump's push for trade talks with India
The US service industry has commended President Donald Trump's commitment to trade negotiations with India, urging that any future agreement with New Delhi prioritize removing the considerable existing services and digital barriers to level the playing field for American service providers.
“Any bilateral agreement that the US negotiates with India should include meaningful disciplines and market access commitments on services, financial services, and digital trade that address persistent barriers for US services firms. An agreement should also include a commitment that India will support the extension of the WTO moratorium on e-commerce duties.”
Christine Bliss, president, Coalition of Service Industries said this during a Congressional hearing on “American Trade Negotiation Priorities held by House Ways and Means Committee — Subcommittee on Trade.
“We also strongly believe that any future agreement should prioritize removing the considerable existing services and digital barriers to level the playing field for US services providers,” Bliss said in her prepared statement at the Congressional hearing on March 25.
India, she said, maintains data localisation requirements on insurers and payments services providers, including banks, as well as limitations on geospatial data. Other measures that handicap US service suppliers include restrictions on digital content aggregation, equity cap limitations, mandatory testing regimes using country-specific standards, and licensing restrictions, she told the lawmakers.
Though India has taken some positive steps to ease limitations on foreign ownership of Indian insurance companies, it has also imposed management and governance requirements that disadvantage foreign insurers. India also maintains onerous regulations on the broadcast sector, stifling innovation and hindering competition, Bliss said.
“We also maintain serious concerns with India's proposed digital competition legislation, which would adopt rules based on the EU's Digital Markets Act that subject US companies to strict and discriminatory restrictions. Also troubling are digital regulatory measures including state-driven Digital Public Infrastructure (DPI) to control domestic digital ecosystems,” the CSI president said.
On the banking front, US banks operating in India face significant tax disadvantages compared to their domestic counterparts. US banks also face barriers in accessing India's ASTROID trading platform, limiting their ability to compete in the market for rupee derivatives and disadvantaging American financial institutions, she said.
“At the same time, we see significant opportunities for greater collaboration and integration on services and digital issues. India is a longstanding partner in promoting regional military and economic security and is a major exporter of digital technologies and services with one of the fastest-growing ICT markets in the world,” Bliss noted.
(Courtesy: www.5wh.com)
