U.S. and India Sign Trade and Investment Framework

March 17, 2010

On March 17, 2010, U.S. Trade Representative (USTR) Ron Kirk and Indian Minister of Commerce and Industry Anand Sharma signed a “Framework for Cooperation on Trade and Investment.” This agreement, also known as a TIFA, sets forth a work program covering different matters, such as facilitation and liberalization of bilateral trade and investment (including agricultural issues), cooperation on sanitary and phytosanitary (SPS) measures, technical barriers to trade, intellectual property rights, regulatory issues affecting trade and investment, etc.

The TIFA seeks to build on the recent rapid growth of U.S.-India trade, which has more than doubled over the past five years. An integral part of the agreement, called the “Integrating U.S. and Indian Small Businesses into the Global Supply Chain Initiative,” is intended to support President Obama’s National Export Initiative by expanding trade opportunities for companies of all sizes.

TIFAs are often considered precursors to free trade agreements because they formalize the bi-lateral trading relationship and frequently provide a forum for investment dispute settlement.