Prabhu raises H-1B visa issue with US
WASHINGTON: The United States has assured India that it will not resort to retaliatory cuts in imports from India to reduce, or eliminate, the trade deficit of $29.6 billion, a top red-flag issue for President Donald Trump who ran on the promise of getting the US a better deal around the world. It will focus on expanding exports.
The assurance came from the US secretary of commerce Wilbur Ross in his meeting on Friday with commerce and industries minister Suresh Prabhu for the third Us-india Commercial Dialogue held in Washington DC, the first iteration of the annual meet on President Trump’s watch.
The commerce secretary said trade deficit was indeed an issue but the US will deal with it “not by reducing imports from India but by promoting more exports from the US to India”, Prabhu said. “He basically meant we will be able to buy more from the US,” he added.
In his meetings, including with US trade representative Robert Lighthizer earlier, the minister raised the issue of H-1BS, the temporary work visa for high-skilled foreigners popular with Indian firms.
“We explained to them that we are not raising this issue because Indians will find it difficult to come, because US economy will find it difficult to cope with the reality because it has benefited by IT professionals penetrating into the market by offering services that has improved their productivity,” Prabhu said.
The minister also said there was progress on long-stalled issues bedeviling export of Indian mangoes, pomegranate, apples and grapes into the US, that were subjected to long inspection delays involving irradiation, that added to cost over- runs making them expensive in grocery stores.
Alphonso, a prime mango variety awaited by American fans every year, retails at almost seven times more than the standard rivals that come from Mexico. They are a tough sell even at speciality outlets popular with South Asians. Indians were assured of express clearance, but in a while.
Two-way trade between the countries stands at $115 billion, which is three times more than in 2005.
US runs a deficit of $29.6 billion, and that has put a huge target on it in the eyes of Trump, who has ordered a probe into all unfavourable trade. US trade deficit with India was also a top issue at the discussions.