Concerned over its low share in Indias farm sector imports,the US has initiated an investigation into protectionist measures undertaken by New Delhi and their bearing on American exports.
The US International Trade Commission (ITC) has launched an investigation into the effects of tariff and non-tariff measures on US agricultural exports to India, ITC said on its website.
The investigation follows a complaint by the US Senate Committee on Finance,which highlighted the issue of disproportionately low US share in Indias agricultural imports.
While US exporters can provide individual examples of trade measures that prevent their sales to India,the extent to which trade and investment measures account for the disproportionately low US share of Indias agricultural imports remains largely undocumented, the Committee on Finance said in the letter to ITC.
As per the Economic Research Service of the US Department of Agriculture (USDA),the India-US agricultural trade has been expanding at 9 per cent every year since 1990,reaching $17 billion in 2007.
However,as per estimates,India maintains a large positive agricultural trade balance with the US as its exports to America was $1.2 billion,while Washington’s exports to India stood at $475 million.