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US technology companies were concerned by India's import restrictions on laptops and tablets, prompting Washington to advocate on their behalf to the Indian Government.
The import restrictions necessitated that international firms such as Apple, Dell, and HP obtain legal permits for laptop, tablet, and certain other electronics shipments.
The restrictions and introduction of a licensing system for the import of laptops and tablets by India in August 2023 triggered concern in the United States. The expected consequences of this action prompted Washington to engage in thorough covert lobbying.
Reuters obtained emails from the US government through a US public records request, which revealed how the US successfully convinced Prime Minister Narendra Modi's administration to change their policy.
Restrictions on importing laptops and tablets
In August of the previous year, the Directorate General of Foreign Trade (DGFT) implemented restrictions on the import of laptops, tablets, all-in-one PCs, ultra-compact computers, and servers.
This implied that international firms such as Apple, Dell, and HP were obligated by law to obtain permits for all such electronic shipments. The initiative, targeted at resolving possible security problems and protecting confidential information, led to concerns about a decrease in sales for manufacturers located overseas.
By the end of September, New Delhi had rescinded the policy. The government announced that they would oversee the imports and make a determination a year afterwards.
Based on the documents and emails reviewed by Reuters, it appears that intense lobbying by the US led to this outcome.
What prompted the lobbying in the US?
It appears that the advocacy efforts were triggered by trade worries that American tech firms were experiencing.
In an email to his peers in the United States Trade Representative (USTR), State Department officer Timothy Wiley stated that American companies perceive the action as extremely defensive and inconsistent with the advancements India has achieved in bettering the investment climate.
"U.S. tech company representatives operating in India informed us that they have been urging their main offices to ramp up production in India," however, they were surprised by this unforeseen action.
The paperwork and electronic correspondences revealed that American authorities were distressed about the unexpected restrictions, which were imposed without any prior notification or discussion. They dubbed it as "extremely troublesome" for the trade environment between America and India, and for the yearly US exports valued at $500 million.
Addressing the 'issues' with India
On the 26th of August, not long after the restrictions were implemented, Katherine Tai, the US Trade Representative, hastily visited New Delhi. She had a meeting with the Indian Commerce Minister, Piyush Goyal, shortly following the policy's announcement. According to a public statement from the USTR, Tai "voiced apprehensions" regarding the policy.
In a private conversation, she was more straightforward. Tai informed Goyal that the US hoped India would "revoke the mandate", as per a USTR briefing document. The briefing also mentioned that India's sudden declaration may cause companies from the US and other nations to reconsider conducting business in India. This is India's position.
The Ministry of Commerce informed Reuters that Tai voiced some worries during her meeting with Goyal in August. The Ministry mentioned that they presented India's security apprehensions during that time. Yet, they did not provide any explanation for overturning the decision or any details regarding the US emails.
Three anonymous Indian authorities stated that New Delhi did not change its policy due to US pressure. They insisted that the choice to remove the limitations was made because the domestic production of laptops and tablets wasn't substantial at this point. The US' worries persist.
Brendan Lynch, the current interim US Trade Representative for South and Central Asia, mentioned that the USTR is continuously monitoring India's examination of imported goods to ensure it doesn't adversely affect their trading partnership.
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