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US officials hint at lifting of sanctions

Visiting US congressmen Wednesday hinted that the new administration might lift the sanctions imposed on India after it conducted nuclear tests in 1998.

There is also an indication that US might set aside differences with countries like India, on issues of including labour standards and environment, in the forthcoming trade negotiation at the World Trade Organisation.

Speaking at a Confederation of Indian Industries meeting, visiting US Congressmen Edward Royce, Jim McDermott and David Bonior, maintained that the issue of lifting sanctions were being held back due to the presidential elections and the present administration would initiate measures to lift it.

McDermott indicated that sanctions were having an adverse impact on both nations and needed to be reviewed.

The Congressmen and the CII agreed to set up a small group of businessmen and government officials of the two nations and identify the key areas of cooperations.

Former US Department of Treasury general counsel Neal Wolin said the country now wants an early new round of trade negotiations to follow the fourth ministerial round in Qatar.

He said the new US administration was not very keen on labour and environmental issues that blocked the Seattle Round of WTO talks.

Wolin, a Brookings Institute Fellow, indicated that US might exclude labour and environment issues in the new round as it has done in recent agreements with Singapore and Chile.

He said the US, passing through an economic slowdown and expected to post two per cent growth through a number of fiscal and monetary measures, was keen on enhancing trade and investment with India.

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