Great stride made in India-US trade relationship says US Commerce Secretary

Washington: Under the Biden administration, India and the US has made great strides in their trade relationships, top US officials have said after President Joe Biden announced that Air India has agreed to a historic purchase of airplanes from Boeing. On Tuesday, the White House announced that Boeing and Air India have reached an agreement under which the airline will purchase 190 B737 MAX, 20 B787, and 10 B777X for a total of 220 firm orders valued at USD 34 billion at the list price.

There will be an option to buy 70 more aircraft that could take the total transaction value to USD 45.9 billion, a deal that US President Biden described as a “historic agreement”.

“I’m thrilled to celebrate this new development in the thriving trade relationship between the United States and India. Today’s announcement is a deal of historic significance between the Boeing Company and the Tata Group,” US Commerce Secretary Gina Raimondo said.

Observing that the Air India orders will be Boeing’s third biggest sale of all time in dollar value and second in quantity, Raimondo said this is a win for workers, manufacturers, and suppliers across the United States, and it reaffirms the deep and lasting relationship between the two nations.

Raimondo is scheduled to travel to India in March to co-chair the US-India CEO Forum and US-India Commercial Dialogue meetings with her Indian counterpart Commerce and Industry Minister Piyush Goyal.

“We’re also delighted to be working with India as part of the Indo-Pacific Economic Framework (IPEF) for Prosperity, a historic opportunity to strengthen our economic ties and fuel economic prosperity across the Indo-Pacific region,” she said adding that she is optimistic about the opportunities for the US-India economic relationship in the years to come.

The IPEF was launched jointly by the US and other partner countries of the Indo-Pacific region on May 23, 2022, in Tokyo. Boeing-Air India deal reaffirms that optimism, the commerce secretary said. “Over the last two years, we have made great strides toward expanding the bilateral trade relationship between the US and India, including through the US-India Trade Policy Forum, to expand market access for American businesses, producers and our workers,” said Deputy United States Trade Representative Sarah Bianchi.

Biden’s announcement of the historic purchase of over 200 American-made aircraft through an agreement between Air India and Boeing is the latest development in strengthening the relationship between the United States and India, she said.

“Today’s announcement builds on India’s recent announcement to reduce tariffs on pecans, certain animal feed imports, and eliminate its duty on ethanol used for industrial purposes,” Bianchi said.

“Last year, the US announced that India agreed to allow imports of US pork and pork products into India, removing a longstanding barrier to US agricultural trade. USTR will continue working diligently to deepen the US-India Trade Partnership,” she said in a statement.

Earlier in the day, Air India announced that it has selected Boeing’s family of fuel-efficient airplanes to expand its future fleet with plans to invest in 190 737 MAX, 20 787 Dreamliner and 10 777X airplanes.

The agreement between Boeing and Air India includes options for 50 additional 737 MAXs and 20 787-9s. When finalized, this will be the largest Boeing order in South Asia and a historic milestone in the aerospace company’s nearly 90-year partnership with the carrier, Boeing said, adding that the order will post to Boeing’s Orders and Deliveries website when final.

“This acquisition of nearly 300, highly advanced Boeing jets is a core element of Vihaan.AI, the comprehensive transformation and growth strategy we are pursuing at Air India,” said Campbell Wilson, CEO and MD, of Air India.

“These new airplanes will enable us to dramatically expand our network, both domestically and internationally, and will come with a completely new, world-class onboard product enabling passengers to travel in the highest levels of comfort and safety. With this order, we are delighted to take our long relationship with Boeing to a new level,” he added.

“Air India’s selection of Boeing’s family of passenger jets shows their confidence in our products and services in the world’s fastest-growing aviation market, and their decision will support engineering and manufacturing jobs at Boeing factories in Washington state, South Carolina and across our supply base,” said Stan Deal, president and CEO of Boeing Commercial Airplanes.

“With the industry-leading fuel efficiency of the 737 MAX, 787 Dreamliner and 777X, Air India is well positioned to achieve its expansion plans and become a world-class global airline with an Indian heart,” Deal said.

Source link

Leave a Reply

Your email address will not be published.