The US adopted a tough posture on bilateral and multilateral trade issues. It warned that unless India wanted another backlash, like the one against outsourcing, the country should reduce tariff and non-tariff barriers, protect intellectual property rights and allow more US goods to flow into the country. It put the burden of trade expansion squarely on "India's shoulders".

Refusing to budge from its stand on agricultural trade negotiations at the World Trade Organisation, Assistant United States Trade Representative Ashley Wills put the onus of reducing agricultural tariffs on developing countries like India in exchange for the lowering of subsidies to farmers by developed countries.

He also said the US was unwilling to reduce the level of domestic support and export subsidies unless other developed countries, like members of the European Union, reduced agricultural support further.

On bilateral trade, US Under-Secretary for Industry and Security Kenneth Juster said India should provide better intellectual property rights protection through a tougher patents regime if it wanted to attract US investments. He was speaking at a press conference in New Delhi.

On the backlash against outsourcing and proposed legislation banning such business practices in the US, Juster said: "As economic opportunities rise, dislocation also rises. The way to address it is to expand trade and investment relations so that people in the US also see the benefits of liberalisation. It has to be a two-way process."

During his various interactions through the day, Juster repeatedly stressed on the need for India to loosen control and provide a simpler Customs regime and lower tariffs. "At times, progress in trade has been potentially less. This is because tariffs and taxes are too high, also there is greater need for protection of intellectual property rights," he said during an interaction with Indian industry, organised by the Federation of Indian Chambers of Commerce and Industry.

As a justification of his demands for greater liberalisation, Juster said the easing of government controls in India and tariff reduction had resulted in a 25 per cent increase in US exports, which were estimated at $4.8 billion this year.

He dismissed India's charges that trade suffered due to sanctions imposed by the US after the Pokhran blasts in 1998, and said, "There is a sanctions hangover. There are continuing misconceptions about sanctions that are no longer in effect."

At the press conference, Juster said an agreement between India and the US on co-operation in missile technology was under discussion, but refused to disclose any details.

Juster said the US did not want to restrict India's progress in high-technology areas and was keen on building confidence in trade by discussing ways of enhancing business in high-technology goods. Only a small percentage of goods were subject to export controls, he added.

In 2002, restricted goods formed only 1 per cent or $38 million of the total US exports to India, according to Juster. He said this year more than 200 licence applications from India had been processed by the US and their approval rate was up to 90 per cent from 84 per cent.