Jun. 26 – United States Secretary of State John Kerry has voiced his support for a bilateral investment treaty with India. Kerry was recently in New Delhi for the 4th round of the Indo-U.S. Strategic Dialogue. In a speech on Sunday, he said the treaty would bolster investor confidence in India and address concerns over trade barriers.
“We need to conclude a bilateral investment treaty as soon as we possibly can, which is an important step to bolstering investor confidence in both our countries,” said Kerry.
He said bilateral trade and investments between the U.S. and India support the economic goals shared by both countries.
“We can do more here and that is why I am here this week. Because I want to ensure that our economic relations grow stronger and we make sure, we honestly address our differences—and there are some—without retracting from our shared goals,” Kerry further stated.
Coinciding with dialogue, the U.S. Agency for International Development (USAID) announced planes to invest US$100 million in India’s clean energy sector. While expanding Indo-U.S. bilateral relations, this investment also works towards the vision of sustainable development in India.
“We share appreciation for competition, for fair competition, smart investment, open markets that encourage entrepreneurs to take risks and protect… when they do,” Kerry said.
Annual trade in goods and services between the U.S. and India has grown more than 50 percent during the Obama administration.
“The world’s largest democracy and the world’s oldest democracy must do more together. uniting not only as a threat to anyone to counter-weigh some region or other countries, but unite as partners building a strong smart future in a critical age,” Kerry stated.
Kerry co-chaired the dialogue with Indian External Affairs Minister Salman Khurshid, discussing key issues such as bilateral trade, security cooperation, higher education, and climate change. Intellectual property protection, local content restrictions and foreign direct investment caps were on the top of Kerry’s economic policy agenda.
The Secretary’s speech emphasized U.S. support for cooperation between India and Pakistan.
“One of the most fruitful and meaningful ways to advance the economy is your continuing normalization of trade relations with your next door neighbor, Pakistan,” he said.
In 2012, trade between India and Pakistan grew by 21 percent. More recently, a special envoy from India met with Pakistan’s Prime Minister Nawaz Sharif to discuss bilateral trade relations.
“I welcome ongoing discussions about expansion of energy trade, establishment of regular air travel between New Delhi and Islamabad and the prospect of more commerce passing through Wagah,” Kerry said. “If India and Pakistan can confidently invest in each other, then the rest of the world will more confidently invest in you.”
Kerry also stressed the grave relevance of the broader U.S.-India relationship.
“I am convinced that we together are uniquely positioned, uniquely equipped to tackle toughest challenges of our times. Challenges regarding opportunity, security and—don’t cringe when I say this, it is real—even survival.”
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