Concerns abound over India’s trade practices

They argue that India is ignoring the evidence that opening trade has boosted their economic growth and are, instead, “lapsing once again into protectionism.”

“We regret that the Indian government is pursuing this short-sighted approach to development, and is creating an economic environment that is hostile to the very inputs and investment that would actually strengthen its infrastructure and security and advance the development of its local high-tech, innovative manufacturing and services base,” they wrote.

They argue that India’s intellectual property environment has significantly deteriorated due to recent legal and policy decisions. The actions reflect a disturbing trend that putting the $60 billion trading partnership in jeopardy. 

During the past couple of weeks, a growing number of lawmakers have been expressing concerns about the problem, suggesting that U.S. trade officials open a dialogue with India to find solutions. 

Specifically, Baucus and Hatch say that India is using its intellectual property law to build up domestic industries at the expense of U.S. innovators.  

“The misuse of patent law to hand U.S. intellectual property to Indian companies is inconsistent with India’s international obligations,” they said.

“Moreover, India’s actions in the pharmaceutical sector could have far reaching adverse implications for trade in other innovative products and in markets outside of India.”

India also has adopted policies in the information and communications technology, clean technology and other sectors that block sales of U.S products and coerce firm to transfer their technology to local industry.  

Copyright piracy also is a significant problem that has increased with improved Internet access.

Furthermore, India has an inadequate enforcement regime that fails to impose penalties sufficient to deter infringement.

“India is a huge and important player in the global trading system, and we would like to have a collaborative, mutually beneficial economic relationship,” the two senators wrote.  

“But the United States and India trade and investment relationship is imperiled so long as India refuses to afford adequate protection of U.S. intellectual property and full market access to U.S.-made innovative products.

“We cannot afford to sit back and watch as India adopts policies that adversely impact U.S. innovative and creative industries, and threaten the greater stability of the international trading system.”