U.S., India tighten trade relation

The United States and India signed an agreement Wednesday to strengthen trade and investment ties, concluding a deal that leaders of the two sides announced last year.

U.S. Trade Representative Ron Kirk and Indian Minister of Commerce and Industry Anand Sharma signed a "Framework for Cooperation on Trade and Investment" in Washington.

This agreement will encourage small businesses in both countries and boost cooperation on clean energy technologies.

"There is almost limitless potential for growth in trade between our two countries," Kirk said, "and that can contribute to economic recovery and job creation in the United States and continued economic growth in India."

"We also intend to use this framework to encourage the development and deployment of clean energy and environmental technologies as well as to support India's infrastructure growth," Sharma said.

Trade between the two economic powers has more than doubled in the last five years to more than 37.6 billion dollars in 2009. Sharma said the possibilities for trade between the United States and India "have not been tapped fully as yet."

U.S. President Barack Obama has pledged to double U.S. exports within the next five years, and the administration hopes to use India's fast growing economy to help meet that goal.

Kirk and Sharma announced their intent to finalize the " Framework for Cooperation on Trade and Investment" when they co- chaired the U.S.-India Trade Policy Forum meeting in New Delhi in October 2009.

The United States-India Trade Policy Forum (TPF), established in July 2005, is the principal bilateral forum for the two governments to discuss the entire spectrum of trade and investment issues.

Source: Xinhua