Obama, Manmohan for reduction of trade barriers- 2010-11-08

Obama, Manmohan for reduction of trade barriers

2010-11-08 22:20:00

New Delhi: Viewing themselves as "natural" partners for speeding up global economic recovery, India and the US on Monday agreed to cut trade barriers and protectionism besides facilitating greater movement of professionals to enhance bilateral cooperation.



According to a joint statement issued after wide ranging discussions between Prime Minister Manmohan Singh and US President Barak Obama, the two leaders stressed that India and the US "have a natural partnership" for enhancing mutual prosperity and stimulating global economic recovery and growth.

They agreed that reduction of trade barriers and protectionist measures and encouragement of research and innovation would create jobs in both the countries, the statement said.

In a positive development for India's professionals, particularly in the IT sector seeking US visas, there was an agreement to "facilitate greater movement of professionals, investors, business travellers and students".

The difficulties in obtaining visa along with hike in fee has been troubling the Indian industry and professionals.

However, there was no clear roadmap for reaching an agreement on the social security issues.

India has been seeking an totalisation agreement with the US to save its professionals from paying the social security levies in America while they are on short term contracts.

"...they (the two leaders) called for intensified consultations on social security issues at an appropriate time," the statement said.

On the much-delayed Doha trade negotiations, both underscored that it was in the mutual interest if an ambitions and balanced WTO agreement for opening the international commerce was concluded.

Special: Obama in India

India and the US are on the opposite sides of the WTO negotiations. Differences revolve mainly around the demand by the developed countries to get market access in the developing countries like India, which want to protect its farmers.