A deepening trade divide

July/August 2016, Trade Wars, 2016
by Amitendu Palit
A senior academic with expertise in international trade agreements explains why India and the US still have much ground to cover in terms of trade ties.

Notwithstanding their geo-strategic bonhomie, India and the US remain far apart on international trade. The distance arises from their inabilities to reconcile to a bilateral trade relationship simultaneously accommodating both of their major sources of distinct global comparative advantages. These advantages for the US are in export of intellectual property (IP) – intensive goods and services such as pharmaceuticals and entertainment and education products – whereas for India, they are in...