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Clinton eases India sanctions slightly during visit

NEW DELHI: U.S. President Bill Clinton has eased sanctions imposed on India after its nuclear tests in 1998 to allow a $25 million U.S. programme to strengthen Indian financial markets to resume, the White House said on Tuesday.

The move will allow the Financial Institutions Reform and Expansion programme funded by the U.S. Agency for International Development to resume providing technical assistance to India's regulatory agencies and financial markets.

"Because of the importance of strong capital markets to global trade and investment, President Clinton has agreed to waive the Glenn Amendment and restart the project," the White House said in a statement.

The Glenn Amendment refers to the law under which President Clinton imposed sanctions on India in May 1998 after it conducted nuclear tests, which triggered tit-for-tat testing by arch-rival Pakistan within weeks.

The sanctions have already been eased once, in October, to lift restrictions placed on certain environmental programmes, and U.S. officials say they may be relaxed further during Clinton's four-day, five-city Indian trip.

India and the United States also took steps on Tuesday to strengthen their economic cooperation with an agreement expanding market access on more than $40 million of U.S. agricultural exports to India.

The White House said that under the agreement, U.S. exporters to India will face lower tariffs, by up to one half, on items such as almonds, orange juice, citrus and other fresh fruits.

The tariff agreement was negotiated under the auspices of the World Trade Organisation. In exchange for its tariff cuts on agricultural items of interest to the United States, India will "adjust its tariffs on other agricultural products," the White House said.

The agreement resulted from U.S. President Bill Clinton's state visit to India this week.-Reuters