Write to ITC, requests investigation.
By Deepak Chitnis
WASHINGTON, DC: Four US Congressman have banded together and called on the US International Trade Commission (ITC) to launch an investigation into India’s business relationships in the US, alleging that India has engaged in “unfair practices” in terms of foreign investments and trade with the US.
“We are writing to request that the USITC conduct an investigation under Section 332(g) of the Tariff Act of 1930 regarding Indian industrial policies that discriminate against U.S. imports and investment for the sake of supporting Indian domestic industries and the effect that those barriers have on the U.S. economy and U.S. jobs. We request that the report should be submitted by November 30, 2014,” says the joint letter written to USITC chairman Irving A. Williamson.
The letter was written by Max Baucus (D-Montana, and chairman of the Senate Finance Committee), Orrin Hatch (R-Utah), Dave Camp (R-Michigan), and Sander Levin (D-Michigan). It cites digital content, pharmaceutical goods, and others as items that India does not properly regulate which hurt the US economy and its people.
This letter comes almost immediately after the American Food and Drug Administration (FDA) announced that it would be cracking down on imports from Indian food suppliers. The crackdown has been proposed as part of its Foreign Supplier Verification Program.
India is the seventh largest importer of food into the US, but ranks among the top countries in terms of whose products are refused entry into the country. Because the US imports so much of its produce – 20% of its vegetables of 50% of its fruit – the FDA is going to get stricter in terms of what it allows to enter and what it sends back.
The FDA proposal still needs to be approved before it can go into effect, which may not happen for some months. The USITC letter asks that the Commission enact regulations on India by November 2014, which is more than a year away.
To contact the author, email to deepakchitnis@americanbazaaronline.com