Daily Management Review

Pompeo Wants India To Open Up Markets For American Companies,


Pompeo Wants India To Open Up Markets For American Companies,
The United States wants India to further open up its economy and market to American companies as well as to "diversify" its energy portfolio, said the US Secretary of State Mike Pompeo. He also added that "real opportunity" has been witnessed by those countries that have opened up their local markets to American companies.
America is "open" to dialogue on trade issues, said Pompeo while talking at the India Ideas Summit of US-India Business Council before his scheduled visit to India later this month. America has opened its doors to those countries that have also allowed American companies to have a "fair and reciprocal trade", he also added. "And I think they've seen real opportunity," he said.
These comments were made even as there are trade spats between the US and some countries such as Mexico, India and China. the US president Donald Trump has been pushing his trade policies based on tariffs and has already imposed a slew of tariffs on Chinese products imported into the US worth billions of dollars.
According to recent media reports in the US, Trump’s new target could be India. India's import tariff on Harley Davidson motorcycles was called "unacceptable" by Trump in a TV interview on Monday. Trump however said that the duty on Harley bikes has been halved by his "good friend" Prime Minister Narendra Modi. Trump has however terminated India's designation as a beneficiary under the Generalised System of Preference trade programme earlier this month which would stopped duty free entry of some Indian products into the US from June 5.
Pompeo is scheduled to meet Prime Minister Modi and his Indian counterpart S Jaishankar during his visit to India. The leaders would likely also discuss strategic issues in addition to trade issues.
"We remain open to dialogue, and hope that our friends in India will drop their trade barriers and trust in the competitiveness" of their companies and businesses, Pompeo said at major his policy speech at USIBC. "We'll also push for free flow of data across borders, not just to help American companies, but to protect data and secure consumers’ privacy," he said. "And speaking of privacy, we are eager to help India establish secure communications networks – including 5G," he added.
He said that it is imperative that economic openness should be ensured by both the countries and added that bringing down financial barriers and creation of open markets is being attempted by the Trump administration.
"It needs to be a place where our partnership is one of true equals, not of domination. Based on my conversations in New Delhi last year, and in subsequent phone calls and meetings, I believe this is a deeply shared vision," Pompeo said while referring to his earlier visit to India in September.
The Indian market has more than 500 American companies currently operational there and about 20 percent of the total exports of India in both goods and services is accounted for by the US, Pompeo said.
"I think that makes India a perfect partner and a great place for us to figure out how to grow our economies and get win-win solutions for both nations," he said. Innovation and entrepreneurship has been unleashed by the free-market reforms in India, he added.