India-US Relations

Butter Chicken

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Dec 2, 2017
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US Envoy: Will transfer critical defence technology to India

CHENNAI: The US on Wednesday announced that it would transfer critical defence technology to India and conduct a tri-services exercise with the country’s armed forces as part of a “2+2” meeting likely to take place in May.

US envoy to India Kenneth Juster, projecting bolstered defence ties between America and India, implied that the US would transfer to India technology that it was yet to share with any country.

Speaking at a US-India Business Council seminar on the first day of DefExpo-18 in Thiruvidanthai, Juster said ties between New Delhi and Washington are “sending a strong signal” to other countries.

“The US has designated India as a major defence partner and it is significant in many respects. The US Congress supports India on both sides of the aisle,” he said, outlining the objectives of the 2+2 meet, which will have two representatives from each side.

Juster said the US would, offer India defence technology with a focus on a jet fighter platform and transfer of technology. This, he said, would enable India to build an “entire ecosystem” for companies to produce jet fighters in this country.
 
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US Announces Review of Trade Preferences With India

Washington: Based on the market access concerns it has with India, the US on Thursday announced eligibility review of India for the Generalized System of Preferences (GSP).

The petitions filed by the US dairy industry and the US medical device industry requested a review of India's GSP benefits, given Indian trade barriers affecting the US exports in those sectors.

India has implemented a wide array of trade barriers that create serious negative effects on US commerce, the USTR alleged.

In India's case, it enables duty-free entry of 3,500 product lines, which benefits exporters of textiles, engineering, gems and jeweller and chemical products.

According to the USTR, the total US imports under GSP in 2017 was USD 21.2 billion, of which India was the biggest beneficiary with USD 5.6 billion, followed by Thailand (USD4.2 billion) and Brazil (USD 2.5 billion).
 
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US adds India to currency watch list with China
(benefits of Strategic Partnership with US!)

The US has added India to the currency practices and macroeconomic policies monitoring list, saying New Delhi increased its purchase of foreign exchange over the first three quarters of 2017 which does not appear necessary.

India is the sixth addition to the watch list which comprises China, Japan, South Korea, Germany and Switzerland.

"India increased its purchase of foreign exchange over the first three quarters of 2017. Despite a sharp drop-off in purchase in the fourth quarter, net annual purchase of foreign exchange reached USD 56 billion in 2017, equivalent to 2.2 per cent of the GDP," the US Department of the Treasury said in its semi-annual report to the Congress.
 
India must look towards US, not Russia & China:US Under Secretary Mark Menezes

“I think India should start looking in the direction of the United States. Look at us, look at what we are offering and then choose us over other countries. I am not saying it will happen overnight, but start looking in our direction,” he told ET.

When asked on concerns that US may be less cost effective to Russia and China, he said: “If countries begin to choose for economic reasons only to go to countries like China and Russia, which frankly do not share the values of democracy, free markets, religious tolerance… (then) I would suggest we need to think very carefully.”
The US, Menezes emphasized, offers a more reliable option now that it’s a net exporter of oil and natural gas. “This allows countries which share our values to choose between a country that can threaten to cut off supply or extort because you are dependent on them.”

The US is keen that India signals its strategic inclination towards the US in the energy sector, adding that the Trump Administration will ensure Westinghouse builds new nuclear reactors in India.

“Be careful of those countries which come in and say price should be the determinative factor when you enter into a co-partnership with them. We want that when countries like India, with whom we have shared values, look for nuclear partners…they want to be with countries like the US.”
 
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India continues to figure in US' intellectual property priority watch list

India continues to figure in the US’ Priority Watch List that identifies trade barriers to US companies due to intellectual property (IP) laws of other countries.

The United States Trade Representative on Friday said that India remains on the list this year for “longstanding challenges in its IP framework and lack of sufficient measurable improvements, particularly with respect to patents, copyrights, trade secrets, and enforcement, as well as for new issues that have negatively affected US right holders over the past year”.
 
India-US steel feud escalates as WTO sets up key panel

The ongoing trade spat between India and the US has intensified after the World Trade Organization (WTO) set up a compliance panel following India’s request on the non-implementation of the appellate body’s ruling against countervailing duties (CVD) imposed by the US on Indian hot-rolled carbon steel products.

Confirming the move, a commerce ministry official speaking under condition of anonymity said the compliance panel was set up on Friday after a meeting of the dispute settlement body, despite the US opposing the move.

The case pertains to India filing a WTO complaint in 2012 against the US CVD on India’s exports of hot-rolled carbon steel flat products. The dispute settlement panel gave a mixed verdict in July, 2014 which was further challenged by both countries before an appellate panel, the highest adjudicating body at the WTO.

However, India complained to WTO in June 2017 that even after the due period, US has not amended its domestic laws to make them compliant with the WTO rules. Both sides went through a consultation period but failed to resolve the matter. India finally requested setting up a panel to examine the US compliance in this matter which was accepted by the dispute settlement body on Friday.
 
Ambassador Sarna slams US media for 'negative' portrayal of India

Indian ambassador to the US Navtej Singh Sarna has slammed the American media for their "negative portrayal" of India, alleging that there is a tendency among foreign journalists based in India to pick up the "exception" stories and ignore the development news.

Sarna's remarks came during his address at the Center for Strategic and International Studies, a top American think tank.

"Now, it is more a case of pity than worry. India has moved on; you haven't," he said when asked about the portrayal of India in the mainstream American media.

Sarna said the American media picks up the "exception" stories, while ignoring the development news.

"There is a tendency to look at the social exception... there is a dowry case, there is a caste issue... so pick it up and splash it. But if there is a start-up story for instance... [they will say] that happens everywhere. Frankly it bothers me, but I do not lose sleep over it anymore... I used to [worry]," the top Indian diplomat said.

By such a "negative" portrayal of India, Sarna said, the American media was doing an "injustice" to its public.

Sarna was participating in a panel discussion during the opening session of the "US & India: From Estranged Democracies to Natural Allies" organised by the top American think-tank.
 
US moves WTO against India’s export schemes

NEW DELHI: Failing to find a mutually agreed solution in the stipulated 30 days to India’s export promotion programmes which the US claims have harmed American workers, Washington has escalated the issue at the World Trade Organization (WTO) and asked it to refer the matter to the Dispute Settlement Body.

“The US on Thursday formally launched a case against us on our export subsidies. They’ve requested the DSB to establish a panel to resolve the dispute in its next meeting,” said an official.

The US had in March challenged practically almost all of India’s export programmes saying that thousands of Indian companies are receiving benefits totalling over $7 billion annually through those schemes. It alleged that despite the expiry of India’s exemption under the WTO’s special and differential provisions for developing countries in 2015, New Delhi has increased the size and scope of these programmes.
 
As India Goes Military Shopping in Russia, US Reminds of Moscow Sanctions

Washington: At a time when India plans to purchase five S-400 Triumf air defence systems for around $4.5 billion from Russia, the US on Saturday said its friends and allies should take into consideration the law under which any significant purchase of military equipment from Moscow would attract American sanctions.

US officials said the major defence purchase by India from Russia would attract sanctions under the Countering America's Adversaries through Sanction Act (CAATSA), which was signed into law by US President Donald Trump in August 2017 and went into effect in January this year.

Prime Minister Narendra Modi and Russian President Vladimir Putin will hold an informal summit in the Russian city of Sochi on Monday, and official sources said the possible impact of the US sanctions against Russia under CAATSA on Indo-Russia defence cooperation may also figure during the talks between the two leaders.

"CAATSA is a feature and we need to take it seriously. The (Trump) administration is always bound by US law. This is a US law. I'm hoping that not just India, but all of the partners that we engage with will understand that we will have to evaluate any potential large defence purchase from Russia seriously because that's what the law demands of us," Tina Kaidanow, Principal Deputy Assistant Secretary of State for Political-Military Affairs, told reporters during a conference call on Saturday.

Kaidanow travels to India next week, during which she will hold talks on defence trade and peacekeeping, which are among two key areas of the rapidly growing US-India partnership as envisioned in the administration's Indo-Pacific strategy.

Referring to the conversation that the US is having with India and other countries on CAATSA, Kaidanow said the US wants this to be a positive discussion, not framed on the negative.

"We are going to have to continue to have that conversation with both our Indian counterparts and others about how do we deal with the CAATSA issue. But, I will tell you again, it is US law. We need to take it seriously. Our partners need to take that into consideration as they make their decisions. I can't stress that enough," Kaidanow said.


When specifically asked if she sees the possibility of US imposing sanctions on India, if it goes ahead with its defence deals with Russia, the senior US official said that everyone should read that legislation carefully and understand its intent.

"The intent is not to sanction our partners. The intent is to emphasise how important it is that Russia's malign behaviour all over the world is countered and by virtue of purchasing large-scale Russian system, what you're doing is enabling that kind of behaviour. That's the intent of the legislation," she said.

India is not going to allow its defence engagement with Russia to be dictated by any other country, the sources said earlier this week, adding New Delhi has been lobbying with the Trump administration on the issue.

Kaidanow sought to clarify that the message was intended not just for India but for all its partners as they contemplate these purchases. She underscored the "positive incentives" to buy American products which are "good" and address relevant security needs besides making their forces interoperable in certain instances.
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"Think about what you're doing when you purchase Russian product. It has a distinctly negative byproduct and that is you are creating an environment in which they are better able to do some of the things that we know are problematic," Kaidanow said.
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She acknowledged the US understands the historic defence relationship between India and Russia.

"We understand all of that. It's a function of what are we talking about? Are you buying, a single truck; are you buying a large scale system ... these are things we're going to talk about," she said.
 
As India Goes Military Shopping in Russia, US Reminds of Moscow Sanctions

Washington: At a time when India plans to purchase five S-400 Triumf air defence systems for around $4.5 billion from Russia, the US on Saturday said its friends and allies should take into consideration the law under which any significant purchase of military equipment from Moscow would attract American sanctions.

US officials said the major defence purchase by India from Russia would attract sanctions under the Countering America's Adversaries through Sanction Act (CAATSA), which was signed into law by US President Donald Trump in August 2017 and went into effect in January this year.

Prime Minister Narendra Modi and Russian President Vladimir Putin will hold an informal summit in the Russian city of Sochi on Monday, and official sources said the possible impact of the US sanctions against Russia under CAATSA on Indo-Russia defence cooperation may also figure during the talks between the two leaders.

"CAATSA is a feature and we need to take it seriously. The (Trump) administration is always bound by US law. This is a US law. I'm hoping that not just India, but all of the partners that we engage with will understand that we will have to evaluate any potential large defence purchase from Russia seriously because that's what the law demands of us," Tina Kaidanow, Principal Deputy Assistant Secretary of State for Political-Military Affairs, told reporters during a conference call on Saturday.

Kaidanow travels to India next week, during which she will hold talks on defence trade and peacekeeping, which are among two key areas of the rapidly growing US-India partnership as envisioned in the administration's Indo-Pacific strategy.

Referring to the conversation that the US is having with India and other countries on CAATSA, Kaidanow said the US wants this to be a positive discussion, not framed on the negative.

"We are going to have to continue to have that conversation with both our Indian counterparts and others about how do we deal with the CAATSA issue. But, I will tell you again, it is US law. We need to take it seriously. Our partners need to take that into consideration as they make their decisions. I can't stress that enough," Kaidanow said.

When specifically asked if she sees the possibility of US imposing sanctions on India, if it goes ahead with its defence deals with Russia, the senior US official said that everyone should read that legislation carefully and understand its intent.

"The intent is not to sanction our partners. The intent is to emphasise how important it is that Russia's malign behaviour all over the world is countered and by virtue of purchasing large-scale Russian system, what you're doing is enabling that kind of behaviour. That's the intent of the legislation," she said.

India is not going to allow its defence engagement with Russia to be dictated by any other country, the sources said earlier this week, adding New Delhi has been lobbying with the Trump administration on the issue.

Kaidanow sought to clarify that the message was intended not just for India but for all its partners as they contemplate these purchases. She underscored the "positive incentives" to buy American products which are "good" and address relevant security needs besides making their forces interoperable in certain instances.
icon_rotfl.gif


"Think about what you're doing when you purchase Russian product. It has a distinctly negative byproduct and that is you are creating an environment in which they are better able to do some of the things that we know are problematic," Kaidanow said.
icon_lol.gif


She acknowledged the US understands the historic defence relationship between India and Russia.

"We understand all of that. It's a function of what are we talking about? Are you buying, a single truck; are you buying a large scale system ... these are things we're going to talk about," she said.

No matter what Tina Kaidanow or whoever else crawls out of the woodworks say, India is too large of a defense market for the US to start imposing sanctions upon. Trump came out a few days ago with a relaxed policies on exporting defense goods. India is looking to modernize large parts of all of its military and this is something the Americans can't ignore. Even if India buys the S400 instead of Patriots the US can win in other areas.

Especially now with a rapid thawing of relations with India, the US can't afford to antagonize the Indians too much. I know that the US government can be arrogant but the past decade or so they've shown a lot more consideration towards India. They want India on their side and I wouldn't be surprised if they grant waivers for India to conduct its business as usual.

 

So India's 'natural partner', the United States:
1. Tries to ruin India's critical defence ties with Russia
2. Complicates India's energy security by sanctioning Iran.
3. Reduces the competitiveness of Indian IT.
4. Takes India to the WTO. And some want to sign COMCASA?

India fights back import tariffs, drags US to WTO


NEW DELHI: Challenging the recent protectionist measures of the US against Indian trade, India has dragged the US to the World Trade Organisation (WTO) over the imposition of import duties on steel and aluminium.

“We have initiated action against the imposition of import duties on steel and aluminium by the US and has sought consultations with the US under the WTO’s dispute settlement mechanism,” an official with the Directorate General of Foreign Trade told TNIE.

India, in its representation, has said that the measure of imposing import duties on steel and aluminium will impact exports of these products to the US and this is not in compliance with global trade norms.

“Such unilateral measures, on the grounds of security exceptions, are an open and blatant abuse of the WTO provisions,” India had said in an informal meeting of heads of delegations of the WTO last week.
After the filing, both India and the US can mutually try to reach an agreement by consultation. If the matter is not solved, then India can take it up to the WTO dispute settlement panel to review the matter and solve it.
 
US moves WTO against India’s export schemes

NEW DELHI: Failing to find a mutually agreed solution in the stipulated 30 days to India’s export promotion programmes which the US claims have harmed American workers, Washington has escalated the issue at the World Trade Organization (WTO) and asked it to refer the matter to the Dispute Settlement Body.

“The US on Thursday formally launched a case against us on our export subsidies. They’ve requested the DSB to establish a panel to resolve the dispute in its next meeting,” said an official.

The US had in March challenged practically almost all of India’s export programmes saying that thousands of Indian companies are receiving benefits totalling over $7 billion annually through those schemes. It alleged that despite the expiry of India’s exemption under the WTO’s special and differential provisions for developing countries in 2015, New Delhi has increased the size and scope of these programmes.
India and EU give WTO lists of US goods for potential tariff retaliation
India and the European Union have given the World Trade Organization lists of the U.S. products that could incur high tariffs in retaliation for U.S. President Donald Trump's global tariffs on steel and aluminum, WTO filings showed on Friday.

The EU said Trump's steel tariffs could cost $1.5 billion and aluminum tariffs a further $100 million, and listed rice, cranberries, bourbon, corn, peanut butter and steel products among the U.S. goods that it might target for retaliation.

India said it was facing additional U.S. tariffs of $31 million on aluminum and $134 million on steel, and listed U.S. exports of soya oil, palm olein and cashew nuts among its potential targets for retaliatory tariffs.
India and EU give trade body lists of US goods for potential tariff retaliation
 
Retaliatory India tariffs threaten US trade

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Washington apples have been moving in bumper volumes to India this year, but the trade has received a jolt with India’s announcement on 18 May that it proposes to apply an additional 30 per cent duty on US apples from next month.

India has told the WTO it proposes to raise duties on 20 products from the US in retaliation to US duties on steel and aluminium products, with a number of agricultural products in the firing line.

US apples face an additional duty of 30 per cent, which, when combined with the existing 50 per cent tariff levied on all apple imports to India, would take the total duty to a swingeing 80 per cent.

US walnuts will be hit with an additional duty of 100 per cent, while shelled almonds and in-shell almonds face increases of 20 per cent and 10 per cent respectively.
 
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US May Block Sale Of Armed Drones As India Is Buying Arms From Russia

India's acquisition of the state-of-the art Russian S-400 ballistic missile shield could come at the cost of getting access to cutting-edge US military equipment like Predator drones.

In an exclusive interview to NDTV, William Thornberry, the Chairman of the House Armed Services Committee, said, "The acquisition of this technology will limit, I am afraid, the degree with which the United States will feel comfortable in bringing additional technology into whatever country we are talking about."

Mr Thornberry, who oversees the Pentagon, all US Military Services and the US Department of Defence agencies, said the acquisition of the Russian system ''threatens our ability to work interoperably in the future."

Significantly, India's decision to go ahead with a Rs. 40,000 crore-deal with Russia for S-400 batteries could come in the way of India acquiring US-built Predator drones which could have been used in operations against terrorist launch-pads along the Line of Control with Pakistan.

The S400 missile system can hit aircraft over 300 km away and intercept incoming missiles.

Last month, the Trump administration had cleared the export of armed, unmanned drones to close strategic partners such as India. According to Mr Thornberry, "This is one of the areas where the acquisition of the Russian anti-aircraft system will make the acquisition of that technology somewhat more difficult."

The US also wants India to sign the Communications Compatibility and Security Arrangement (COMCASA) and the Basic Exchange and Cooperation Agreement for Geo-Spatial Cooperation (BECA) to take their bilateral strategic partnership + to the next level, with an eye firmly on China’s “aggressive” moves in the Indo-Pacific region.

India maintains a close military relationship with both the United States and Russia but it is Russia which has provided the bulk of India's military weapons systems over several decades. Earlier this year, the United States passed the Countering America's Adversaries Through Sanctions Act (CAATSA) against Russia for allegedly getting involved in the US election process. This means that the United States could technically place sanctions even on close partner nations such as India for acquiring Russian weaponry.

However, Mr Thornberry has pointed out that while the US is disappointed with India's new military acquisition from Russia, sanctions against New Delhi were unlikely at the present stage. Neither will there be an India-specific exemption to CAATSA. "In the legislation that passed the house just last Thursday, there was additional flexibility in the law for nations that have historical ties and thus Russian equipment" said Mr Thornberry who added that "there will be some additional flexibility that will not just be limited to India but there are other countries that fall into that category".

India to ignore US sanctions on Iran, Venezuela: minister

NEW DELHI: India will keep trading with Iran and Venezuela despite the threat of fallout from US sanctions against the two countries, Foreign Minister Sushma Swaraj said Monday.

Swaraj, asked at a news conference whether US action against Iran and Venezuela would damage India, said the country would not make foreign policy “under pressure.”

US President Donald Trump this month withdrew from the Iran nuclear deal and ordered the reimposition of sanctions suspended under the 2015 accord.

Washington has also tightened sanctions against Venezuela over the controversial re-election of President Nicolas Maduro.
Both countries are key oil suppliers to India and the United States has warned that foreign companies which deal with Iran could themselves be punished.

But Swaraj said New Delhi did not believe in “reactionary” policies and would not be dictated to by other countries.

“We don’t make our foreign policy under pressure from other countries,” she told a news conference.
“We believe in UN sanctions but not in country-specific sanctions.”

Swaraj’s comments came just before a meeting with her Iranian counterpart Mohammad Javad Zarif in New Delhi.
Bilateral trade between India and Iran amounted to $12.9 billion in 2016-17. India imported $10.5 billion worth of goods, mainly crude oil, and exported commodities worth $2.4 billion.

India has other interests in Iran, in particular a commitment to build the port of Chabahar on the Gulf of Oman.
The port is being touted as a way for India to establish trade routes that bypass rival Pakistan.

Media reports have speculated India could revive a rupee-rial payment arrangement with Iran to shield exporters from the heat of US sanctions.
Swaraj also said India would continue trading with Venezuela, but there was no plan to use its local cryptocurrency in oil trade.
 
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American NGO woman involved in anti-Kudankulam protests deported

The Centre on Thursday told the Delhi HC that it had deported an American entrepreneur and later blacklisted her as some of her activities had political overtones. She had made false assertions in her business visa application, it added.

Kasha Elizabeth Vande (48) organised an art exhibition against the Kudankulam Nuclear Power Plant in Tirunelveli, the Centre told the Court. She was doing charity work and NGO activities for which there was a different visa.

She could not carry out those activities under a business visa, it added. Kasha was deported on January 5, even before the matter had reached the courts. Kasha’s lawyer said that she had organised the art exhibition in 2013, despite which the government had renewed her business visa in 2017 for another 10 years. Kasha also claimed that she had been residing in India for 10 years before her deportation. A plea was moved challenging her detention at the Chennai airport when she had returned from the US.

The lawyer sought interim orders for allowing his client to return to India as she was the organiser of a popular photo exhibition ‘PondyPHOTO’, scheduled to be held this year in Puducherry. But the Court refrained from passing any interim directions, saying the matter required longer hearing.
 
American NGO woman involved in anti-Kudankulam protests deported

The Centre on Thursday told the Delhi HC that it had deported an American entrepreneur and later blacklisted her as some of her activities had political overtones. She had made false assertions in her business visa application, it added.

Kasha Elizabeth Vande (48) organised an art exhibition against the Kudankulam Nuclear Power Plant in Tirunelveli, the Centre told the Court. She was doing charity work and NGO activities for which there was a different visa.

She could not carry out those activities under a business visa, it added. Kasha was deported on January 5, even before the matter had reached the courts. Kasha’s lawyer said that she had organised the art exhibition in 2013, despite which the government had renewed her business visa in 2017 for another 10 years. Kasha also claimed that she had been residing in India for 10 years before her deportation. A plea was moved challenging her detention at the Chennai airport when she had returned from the US.

The lawyer sought interim orders for allowing his client to return to India as she was the organiser of a popular photo exhibition ‘PondyPHOTO’, scheduled to be held this year in Puducherry. But the Court refrained from passing any interim directions, saying the matter required longer hearing.

Why is the court hearing a case of a visa violation of a Tourist who was organizing anti-India activities as NGO in India? Are there lesser cases pending in Indian courts, that they burden themselves with Deportation cases? Illegal Rohingya immigrants getting stay orders on deportation. What the hell is this?
 
“I think India should start looking in the direction of the United States. Look at us, look at what we are offering and then choose us over other countries. I am not saying it will happen overnight, but start looking in our direction,” he told ET.
They cut supplies to their nearest allies when they don't follow the US orders, that doesn't exactly give a good reputation for what they are offering.

When asked on concerns that US may be less cost effective to Russia and China, he said: “If countries begin to choose for economic reasons only to go to countries like China and Russia, which frankly do not share the values of democracy, free markets, religious tolerance… (then) I would suggest we need to think very carefully.”

For all its talk of Democracy, West uses its HR and NGO's to meddle in internal affairs of India in the name of Freedom and Free speech,Religious Tolerance We don't exactly need such partners who will bring down our house as termites.