WASHINGTON, June 5: US Companies face bleak business and investment prospects in India in the wake of economic sanctions that the Clinton administration had slapped on New Delhi last month after its nuclear tests.Their representatives expressed concern at a day-long meeting here yesterday of the US-India Business Council (USIBC) - a body comprising representatives of trade and industry from the two countries. This was their first meeting after the imposition of the sanctions.Since its deliberations were closed to the press, a two-page statement, released after its day-long deliberations, expressed hope that India and Pakistan, with the indispensable support of the United States, would take steps in the near future to address effectively the issue which separated them.
The meeting was originally planned to be inaugurated either by President Clinton or Secretary of State Madeleine Albright, but they cancelled their programme at the last moment, apparently after India's nuclear tests. Moreover, unlike inthe past years, this time its deliberations were beyond the pale of media.
Transport secretary Rodeny Slater, who represented the Clinton administration, spoke on increasing investment in India's transportation and infrastructure sectors.Deputy chairman of the Planning Commission Jaswant Singh inaugurated the council session and India's ambassador to the US Naresh Chandra gave details of the security environment of India which compelled its government to test nuclear devices.
Besides business executives from the two countries, former US ambassador to India Frank G Wisner was also present.Highlighting the fact that the sanctions weighed heavily on the US, the statement said their effectiveness as an instrument of policy was limited for want of multilateral support.
Without waiver provisions, they afford little discretion to the presidents of the United States. Too often business opportunities lost due to sanctions, simply flow to other, more opportunistic competitors.
In some cases, it pointed, theapplication of US sanctions against the government of India might actually strengthen India government monopolies, the idea, which militates against the very concept of liberalisation.
By imposing an increasingly onerous burden on US companies, sanctions are seriously undermining American companies competitiveness abroad, the statement noted.It said the cancellation of credits from the US export-import bank and the Overseas Private Investment Corporation (OPIC) might impact the cost of financing US manufactured products and the competitiveness of US companies in the Indian markets.
The Council wanted the US to continue to recognise the broader national interests that are engaged in India.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
