U.S. Trade Report Calls ‘Make In India’ Policy As “Trade Restrictive”

The U.S. tried to resolve “long-standing market access impediments affecting U.S. exporters” with India during 2020, says the 2021 President’s Trade Agenda and 2020 Annual Report — an annual report submitted by the U.S. Trade Representative (USTR) to Congress. The report terms India’s policies “trade-restrictive” and saying the “Make in India” campaign epitomises the challenges to the trade relationship.

“While India’s large market, economic growth, and progress towards development make it an essential market for many U.S. exporters, a general and consistent trend of trade-restrictive policies have inhibited the potential of the bilateral trade relationship. Recent Indian emphasis on import substitution through a “Make in India” campaign has epitomized the challenges facing the bilateral trade relationship,” the report says. The Make in India campaign was launched by Prime Minister Modi in 2014 to incentivise production in India.

The report describes the Trump administration’s revocation of India’s preferential trading status under the Generalised System of Preferences (GSP) program in June 2019 and the ensuing discussion to achieve a mini trade deal (“package”) throughout 2020.

“U.S. objectives in this negotiation included resolution of various non-tariff barriers, targeted reduction of certain Indian tariffs, and other market access improvements. The United States also engaged with India on an ongoing basis throughout 2020 in response to specific concerns affecting the full range of pressing bilateral trade issues, including intellectual property (IP) protection and enforcement, policy development affecting electronic commerce and digital trade, and market access for agricultural and non-agricultural goods and services,” the report said.

These issues remain unresolved, leaving inconclusive, negotiations that lasted until close to the end of the Trump administration.

In a country-wise section on Digital Service Tax (DST), a Section 301 investigation on India’s DST, which began in June last year, is highlighted. The investigation is ongoing, as per the report.

India finds a total of 179 mentions in the report which is over 300 pages long. Many of the mentions are in a chapter on trade enforcement activities — describing disputes brought by the U.S. at the World Trade Organization (WTO).

Nature and Nurture: How the Biden Administration Can Advance Ties With India

As the administration of Joseph R. Biden Jr. is set to begin in the United States, the U.S.-India relationship is facing new tests. Biden, who deemed India a “natural partner” on the campaign trail, will have the task of upgrading a mature relationship at a time of new global dynamics and challenges.

A new Asia Society Policy Institute (ASPI) issue paper, “Nature and Nurture: How the Biden Administration Can Advance Ties with India,” outlines the competing pressures currently shaping U.S.-India relations.

In the paper, ASPI Associate Director Anubhav Gupta provides a blueprint for how the incoming U.S. administration can advance bilateral ties to the next level, nurturing Biden’s idea of a “natural” relationship. Presenting a series of 10 recommendations to strengthen the U.S.-India partnership, the paper suggests that a Biden administration:

  • Expand the scope of the relationship to elevate health, digital, and climate cooperation.
  • Turn the page to a positive commercial agenda that emphasizes reform and openness.
  • Renew U.S. leadership and regional consultation in the face of China’s rise.
  • Emphasize shared values as the foundation of the relationship.

The paper also argues that a growing convergence between the views of New Delhi and Washington regarding Beijing will continue to facilitate a stronger security partnership. However, “despite the increasing convergence with New Delhi on the China threat, Washington should not take for granted that a deeper strategic alignment is inevitable,” Gupta writes.

At the same time, the coronavirus pandemic has devastated both economies and strengthened support for economic nationalism, which may impede stronger commercial cooperation and the two nations’ ability to take on China. Gupta observes that “at a time when the United States and India are starting to decouple from the Chinese economy, they unfortunately have not found ways to draw closer together commercially.” With India embarking on a new campaign of “self-reliance,” an ambitious commercial agenda may be out of reach; however, Gupta argues that “Biden should not shirk from setting an optimistic tone for the relationship that deviates from the recriminations of the past four years.”

Moreover, Gupta notes that a further weakening of democratic norms in India could raise difficult questions for Biden. The incoming U.S. administration “will have to walk a tightrope of emphasizing shared values and standing up for democratic ideals while ensuring that it does not alienate important partners like India in the process.”

(A new issue paper from the Asia Society Policy Institute)

Trump Honours Modi With Legion of Merit Award

Prime Minister of India, Narendra Modi was presented with the highest degree Chief Commander of the Legion of Merit on Monday, December 21st in Washington, DC. The award is given only to the Head of State or Government. Modi was given the award in recognition of his steadfast leadership and vision that has accelerated India’s emergence as a global power.
US President Donald Trump on Monday presented the prestigious Legion of Merit to Prime Minister Narendra Modi for his leadership in elevating strategic partnership of the two countries and emergence of India as a global power.

India’s Ambassador to the US, Taranjit Singh Sandhu, accepted the award on behalf of the prime minister from the US National Security Advisor Robert O’Brien at the White House.
President Trump “presented the Legion of Merit to Indian Prime Minister Narendra Modi for his leadership in elevating the US-India strategic partnership,” O’Brien said in a tweet. Modi was presented with the highest degree Chief Commander of the Legion of Merit which is given only to the Head of State or Government.

He was given the award in recognition of his steadfast leadership and vision that has accelerated India’s emergence as a global power and elevated the strategic partnership between the United States and India to address global challenges.

O’Brien in another tweet said that Trump also presented the Legion of Merit to Australian Prime Minister Scott Morrison and the former Japanese Prime Minister Shinzo Abe. The awards were received by their respective ambassadors in Washington DC.

President Trump “awarded the Legion of Merit to Japanese Prime Minister Shinzo Abe for his leadership and vision for a free and open Indo-Pacific,” he said.

Trump awarded the Legion of Merit to Australian Prime Minister Scott Morrison for his leadership in addressing global challenges and promoting collective security, O’Brien tweeted.
The United States is the latest country to confer its highest award to the Indian prime minister. Other awards include Order of Abdulaziz Al Saud by Saudi Arabia in 2016, State Order of Ghazi Amir Amanullah Khan (2016), Grand Collar of the State of Palestine Award (2018), Order of Zayed Award by United Arab Emirates (2019), Order of St Andrew by Russia (2019), Order of the Distinguished Rule of Nishan Izzuddin by Maldives (2019.

Trump’s Attorney General Barr Denies Voter Fraud In Us 2020 Election

Attorney General William Barr said Tuesday the Justice Department has not uncovered evidence of widespread voter fraud that would change the outcome of the 2020 presidential election.

His comments come despite President Donald Trump’s repeated claims that the election was stolen, and his refusal to concede his loss to President-Elect Joe Biden.

In an interview with The Associated Press, Barr said U.S. attorneys and FBI agents have been working to follow up specific complaints and information they’ve received, but they’ve uncovered no evidence that would change the outcome of the election. “To date, we have not seen fraud on a scale that could have affected a different outcome in the election,” Barr told the AP.

The comments are especially direct coming from Barr, who has been one of the president’s most ardent allies. Before the election, he had repeatedly raised the notion that mail-in voter fraud could be especially vulnerable to fraud during the coronavirus pandemic as Americans feared going to polls and instead chose to vote by mail.

Last month, Barr issued a directive to U.S. attorneys across the country allowing them to pursue any “substantial allegations” of voting irregularities, if they existed, before the 2020 presidential election was certified, despite no evidence at that time of widespread fraud. That memorandum gave prosecutors the ability to go around longstanding Justice Department policy that normally would prohibit such overt actions before the election was certified. Soon after it was issued, the department’s top elections crime official announced he would step aside from that position because of the memo.

The Trump campaign team led by Rudy Giuliani has been alleging a widespread conspiracy by Democrats to dump millions of illegal votes into the system with no evidence. They have filed multiple lawsuits in battleground states alleging that partisan poll watchers didn’t have a clear enough view at polling sites in some locations and therefore something illegal must have happened. The claims have been repeatedly dismissed including by Republican judges who have ruled the suits lacked evidence. Local Republicans in some battleground states have followed Trump in making similar unsupported claims.

Trump has railed against the election in tweets and in interviews though his own administration has said the 2020 election was the most secure ever. Trump recently allowed his administration to begin the transition over to Biden, but has still refused to admit he lost.

The issues Trump’s campaign and its allies have pointed to are typical in every election: Problems with signatures, secrecy envelopes and postal marks on mail-in ballots, as well as the potential for a small number of ballots miscast or lost.

But they’ve also requested federal probes into the claims. Attorney Sidney Powell has spun fictional tales of election systems flipping votes, German servers storing U.S. voting information and election software created in Venezuela “at the direction of Hugo Chavez,” – the late Venezuelan president who died in 2013. Powell has since been removed from the legal team after an interview she gave where she threatened to “blow up” Georgia with a “biblical” court filing.

Barr didn’t name Powell specifically but said: “There’s been one assertion that would be systemic fraud and that would be the claim that machines were programmed essentially to skew the election results. And the DHS and DOJ have looked into that, and so far, we haven’t seen anything to substantiate that,” Barr said.

He said people were confusing the use of the federal criminal justice system with allegations that should be made in civil lawsuits. He said such a remedy for those complaints would be a top-down audit conducted by state or local officials, not the U.S. Justice Department.

“There’s a growing tendency to use the criminal justice system as sort of a default fix-all, and people don’t like something they want the Department of Justice to come in and ‘investigate,’” Barr said. He said first of all there must be a basis to believe there is a crime to investigate.

“Most claims of fraud are very particularized to a particular set of circumstances or actors or conduct. They are not systemic allegations and. And those have been run down; they are being run down,” Barr said. “Some have been broad and potentially cover a few thousand votes. They have been followed up on.”

Under Biden, The United States Should Be There For Its Neighbors In The Western Hemisphere

The Biden administration should pay particular attention to the Western Hemisphere in setting its foreign policy priorities for the next four years. Central and South America, and Caribbean nations, have long been comparatively sleepy in U.S. foreign policy circles. And while the Trump administration, at times, directed its focus to the region — to Venezuela and Cuba, in particular — there remains significant potential to advance important U.S. strategic interests with but a few relatively low-cost, discreet, tailored actions, that would seemingly align with President-Elect Biden’s foreign policy world view.

Here, I do not purport to present a comprehensive policy for the hemisphere, which must address things like transnational criminal organizations, counter-narcotics policy, and energy and environmental issues. Leaving aside that important discussion for now, there are key signals that the Biden administration can send right out of the gate on democracy issues, economic development and immigration policy, trade, and more.

A premium on democracy

As a first step, the Biden administration should try to bring countries in Central and South America, and the Caribbean, into the aspirational coalition of democracies initiative. Doing so would signal renewed American attention on the institution of democracy with our regional neighbors, many of whom are suffering from a marked decline in democratic norms and ideals. The region’s mixed response to the COVID-19 pandemic has likely exacerbated this decline.

Establishing and jealously protecting relationships between the United States and Latin American democracies would alert the more authoritarian leaders in the region — like in Venezuela, Nicaragua, Cuba, and increasingly Brazil — that this administration will place a premium on its relationship with democratic partners. This should help shape the whole of future regional interactions and transactions.

Improving U.S. policies on economic development and immigration

Next, the administration should pursue new ways, beyond the Alliance for Prosperity and América Crece, for the United States to help enhance economic development in the region.

Improving economic conditions will help check the seemingly constant challenge posed by irregular out-migration, especially as the effects of global climate change continue to exacerbate the risk of such migration. Moreover, economic development could serve as an important counter-balance to China’s Belt and Road Initiative (BRI) and its growing aspirations throughout the region.

While admittedly a bit axiomatic, improving economic conditions — especially in Central and South America, though also in the Caribbean — would address a significant “push” factor for migrants fleeing their respective countries, usually for the United States. This is particularly true of the so-called “Northern Triangle countries” of El Salvador, Guatemala, and Honduras. Irregular migration from these countries — and others in the region, including increasingly Mexico — to the United States appears to indeed be a persistent issue, despite a near singular focus on it from the outgoing Trump administration.

A new Biden administration might see similar numbers of irregular migrants arriving at the U.S. land border as the Trump administration saw in its initial months (and really, throughout its tenure). As a result, it could very well find itself with an all-consuming foreign policy challenge that prevents it from addressing other important issues.

In such a situation, a Biden team would likely face strong pressure from its political left flank to immediately and aggressively unwind — or at a minimum, not apply — Trump-era immigration policies. These policies, not counting the public health measures at the border in response to COVID-19, include of course the wall construction, the Migrant Protection Protocols (MPP), the third-country asylum rule, and the network of Asylum Cooperative Agreements, all of which the outgoing Trump administration used to great effect to deny entry, execute removals, and facilitate the transportation of arriving migrants to other countries. This issue is complicated by U.S. public opinion: A large portion of Americans apparently continue to support at least the ends achieved by such policies, especially during the pandemic, thus creating the condition where rapidly fielding a feasible solution to a fresh surge of migrants at the border may well prove both operationally and politically untenable.

So, as they say, the best defense is a good offense, which makes it critical for a new Biden administration to take the initiative to improve the economic conditions of our regional neighbors. It should do so rapidly, especially as a Biden presidency in and of itself likely creates its own not insignificant immigration “pull” factor. While this initiative may not stop all of the inevitable flow to the U.S. southwest border, clearly articulating this goal may help mitigate the numbers involved.

(By Michael Sinclair at Brookings)

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