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US tech companies were deeply concerned due to India's import restrictions on laptops and tablets, prompting Washington to advocate for them with the Indian Government
These import restrictions necessitated that international firms such as Apple, Dell, and HP legally secure licenses for the delivery of laptops, tablets, and certain other electronic products.
In August 2023, India's restrictions and introduction of a licensing system for laptop and tablet imports had raised concerns in the United States. The expected consequences of this action led Washington to engage in significant covert lobbying.
Emails from the US government related to these discussions, obtained by Reuters through a US public records request, revealed the strategies the US used to convince Prime Minister Narendra Modi's administration to change the policy.
Restrictions on importing laptops and tablets
In the previous year's August, 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 overseas firms such as Apple, Dell, and HP were obligated by law to obtain permits for all types of electronic shipments. The action, intended to tackle possible security problems and protect confidential information, raised concerns about a decrease in sales for manufacturers located overseas.
By the end of September, New Delhi had cancelled the policy. The authorities stated that they would oversee the imports and make a determination a year later.
Based on documents and emails viewed by Reuters, it appears that intense lobbying from the U.S. led to this outcome.
What prompted the lobbying in the US?
The advocacy effort appears to be driven by trade worries that tech companies based in the US were experiencing.
Timothy Wiley, a State Department official, expressed in an email to his peers in the United States Trade Representative (USTR) that American companies perceived the action as extremely defensive and not in line with India's advancements in enhancing the investment climate.
"US tech company representatives operating in India informed us that they have been advocating for their main offices to boost production in India," however, this unforeseen action left them surprised.
The papers and electronic correspondences revealed that American authorities were distressed by the sudden restrictions, which were implemented without any prior warning or discussion. They termed it as "extremely troublesome" for the commercial environment between the US and India, and for the annual US exports valued at $500 million.
Addressing the 'issues' with India
On August 26, not long after the restrictions were implemented, US Trade Representative Katherine Tai hastily traveled to New Delhi. She met with the Commerce Minister, Piyush Goyal, shortly after the policy was made public. According to the USTR's official announcement then, Tai expressed her worries about the policy.
In a private setting, she was straightforward. Tai informed Goyal that the US desired India to "withdraw the mandate", as per a USTR briefing document. She also mentioned in her briefing that India’s unanticipated declaration might discourage companies in the US and other countries from considering business ventures in India. India's position
The Ministry of Commerce informed Reuters that Tai expressed certain issues during her meeting with Goyal in August. They communicated India's security worries during that period. Yet, they did not provide any explanation for the change in the decision or about the US emails.
Three anonymous Indian authorities stated that the decision by New Delhi to withdraw its restrictions wasn't influenced by US pressure. They emphasized that the decision was made due to the minimal local production of laptops and tablets at the current time. However, concerns from the US persist.
Brendan Lynch, who currently serves as the interim Assistant US Trade Representative for South and Central Asia, stated that the USTR continues to carefully monitor India's inspection of imported gadgets to ensure that it doesn't adversely affect the trade ties.
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