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India poses barriers to American trade: USTR

As per 2014 report of the US Trade Representative (USTR), Indian policies pose barrier to American trade with India.

US is forcing India to remove obstacles for smoother business relations.

As per the report India’s policies on wholesale foods labelling, security regulations on telecom equipment, safety testing requirements for electronics and IT equipment and proposed amendment to the hazardous waste act  are main reason for trade barriers.

The issues:

1. Used and refurbished electrical and electronic equipment (EEE)

According to the report, the proposed Fifth Amendment to India’s Hazardous Waste Act (published in November 2013) sets out conditions for the import and movement of used and refurbished electrical and electronic equipment (EEE) facilitating reuse and extension of life of EEE to the benefit of the environment.

But in India’s perspective the 5th Amendment to the Hazardous Waste Act should be interpreted as – it provides guidelines for protection of the environment and health against adverse impacts of wastes due to used and refurbished electrical and electronic equipment (EEE).

2. Telecommunications equipment 

India has proposed a  preferential market access (PMA) policy to favour domestic telecom manufacturers for government contracts.

This PMA policy is issued by Government for Security concerns related to imported telecom equipments.

As per USTR report, India has failed to provide additional or reliable information with regard security concern of imported telecom equipments resulting in trade barriers between two countries.

3. Package sizes

US food products are packaged in traditional English units supported by Codex and other international bodies, (fluid ounces, pounds and pints). Highly impacted commodities include canned and bottled drinks, packaged biscuits and bottled vegetable oils. India has found the packaging creating conflicts with the Indian system of measures (Kg, Litres, etc.) 

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