Date:15/08/2004 URL: http://www.thehindubusinessline.com/2004/08/15/stories/2004081502450300.htm

Back IACC urged to co-ordinate with Indo-US JBC on services FTA

Our Bureau

New Delhi , Aug. 14

THE Union Commerce Minister, Mr Kamal Nath, on Friday asked the Indo-American Chamber of Commerce (IACC) to co-ordinate with the Indo-US Joint Business Council (JBC) for joint evaluation of the merits and various other aspects of a free trade agreement (FTA) on services between India and the US.

Such an exercise was required before the Government could take a decision to consider entering into a FTA with the US, he added. The Minister also said that the Government had to look at all implications before going ahead with any FTA.

"The Indo-US JBC has already mentioned about it. Now you (IACC) are proposing it. I would think that it's for you both to look at it together before the Government gets into it," Mr Kamal Nath told members of the IACC at a meeting organised by the chamber in the Capital.

He was responding to the suggestion of the IACC President, Dr V. Rangaraj, that there could be an FTA between India and the US in the services sector.

"We should consider entering into a FTA with the US. This will not only increase trade but attract foreign investment from the US. To begin with there could be an FTA in the services sector. There are strong complementarities between India and the US in the service sector and a FTA would be a win-win for both countries," Dr Rangaraj said.

Mr Robert O. Blake, Jr., Charge d' Affairs, US Embassy, New Delhi, said that both the Governments have been making a concerted effort to transform the bilateral relationship in all its dimensions.

"The US would like to see this transformation move from a strategic partnership to a comprehensive relationship."

He also said that the US sees tremendous potential for expanded economic exchanges with India.

"Knowledge-based and hi-tech sectors, agri-business, health and education and infrastructure development hold particular promise, especially as India takes important steps towards greater protection of intellectual property and private sector involvement in rural development projects."