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India 'Screwed Up': How the US Lobbied New Delhi To Reverse Laptop Rules 21

India reversed a laptop licensing policy after behind-the-scenes lobbying by U.S. officials, who however remain concerned about New Delhi's compliance with WTO obligations and new rules it may issue, according to U.S. trade officials and government emails seen by Reuters. From the report: In August, India imposed rules requiring firms like Apple, Dell and HP to obtain licences for all shipments of imported laptops, tablets, personal computers and servers, raising fears that the process could slow down sales. But New Delhi rolled back the policy within weeks, saying it will only monitor the imports and decide on next steps a year later.

The U.S. government emails -- obtained under a U.S. open records request -- underline the level of alarm the Indian curbs caused in Washington, and how the U.S. scored a rare lobbying win by persuading Prime Minister Narendra Modi's usually inflexible government to reverse policy. U.S. officials have often been concerned about India's sudden policy changes which they say create an uncertain business environment. India maintains it announces policies in the interest of all stakeholders and encourages foreign investments, even though it often promotes local players over foreign ones.

Some of the language in the documents was blunt, despite the bonhomie often displayed by both sides in public. U.S. officials were upset India's changes to laptop imports came "out of the blue", without notice or consultation, and were "incredibly problematic" for the business climate and $500 million worth of annual U.S. exports, the documents and emails showed. U.S. Trade Representative Katherine Tai met Indian Commerce Minister Piyush Goyal in New Delhi on Aug. 26, soon after the policy was announced. Although the USTR's public readout said Tai "raised concerns" about the policy and "noted" that stakeholders needed to be consulted, she privately told Goyal during the meeting that the U.S. wanted India to "rescind the requirement", a USTR briefing paper showed.
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India 'Screwed Up': How the US Lobbied New Delhi To Reverse Laptop Rules

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  • A win for free trade (Score:5, Interesting)

    by christoban ( 3028573 ) on Thursday March 21, 2024 @03:53PM (#64334683)

    A win for free trade, I guess, just not very exciting.

    Now I wish they'd let students teach Evolution and the Periodic Table in grade school again.

    • Teachers. I'm tired.

    • by PPH ( 736903 )

      Thank goodness the USA stepped up to protect Lenovo's market share.

  • So many foreign countries put huge tartrifs and fees on importing computers so that fewer people can afford to buy one and everybody just uses their phones for everything.

    So you've got a larger than nessessary amount of computer illiterate people. Kids won't learn computers. And their tech industries won't be able to compete with countries where everybody has high-end computers from a young age.

    It seems like a bad value proposition is all I'm saying. OTOH it probably upsets people less than tarrifs on food

    • by HBI ( 10338492 )

      As time goes on, countries like India are likely to implement more and more in the way of policies that look a lot like autarky, trying to bring as much production onshore in India as possible. Our leverage to change this is weak already and eroding fast. We should enjoy these victories, as they will become more and more few and far between.

      The whole BRICS thing is a good reason why, we are rapidly becoming just another competitor in a multipolar world.

  • The WTO is dead (Score:3, Insightful)

    by PertinaxII ( 6264270 ) on Thursday March 21, 2024 @05:28PM (#64334859)

    China has never followed WTO rules and gotten away with it. Trump inflicted more damage on it. Recently the WTO has failed to get an agreement on any rounds of trade agreements in recent years including tightening the rules on rogue nations like China. Australia abandoned all it's WTO actions against China as soon as China lifted some of the illegal tariffs because they were only ever a bargaining tool, with no hope of any real action or sanctions by the WTO.

    The WTO has failed to get a deal on legally allowing poor countries access to IP for COVID tests and in the latest rounded of talks on agriculture and fisheries. Negotiations on subsidies never even started. The only recent agreement to succeed was a 2 year extension to the moratorium on e-business tariffs.

    Everyone is become more protectionist and trying to protect themselves and their goods, services and innovations from others because there is zero trust.

  • The US was only acting to protect the profits of Apple and Google here.

  • India needs to crack down on scam callers if they want to do the world some job ! Too many local officials getting payoffs !
  • and "noted" that stakeholders needed to be consulted,

    Remember, the WEALTHY must give their approval before a rule is changed!!

If all the world's economists were laid end to end, we wouldn't reach a conclusion. -- William Baumol

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