Advertisement
Tuesday, Oct 19, 2021
Outlook.com
Outlook.com

US President Donald Trump Terminates Preferential Trade Status For India Under GSP

The GSP is the largest and oldest US trade preference programme and is designed to promote economic development by allowing duty-free entry for thousands of products from designated beneficiary countries.

US President Donald Trump Terminates Preferential Trade Status For India Under GSP
US President Donald Trump | File Photo
US President Donald Trump Terminates Preferential Trade Status For India Under GSP
outlookindia.com
2019-06-01T09:08:49+05:30

US President Donald Trump has terminated India's designation as a beneficiary developing nation under the key GSP trade programme after determining that it has not assured the US that it will provide "equitable and reasonable access to its markets."

The Generalized System of Preference (GSP) is the largest and oldest US trade preference programme and is designed to promote economic development by allowing duty-free entry for thousands of products from designated beneficiary countries.

"I have determined that India has not assured the US that it will provide equitable and reasonable access to its markets. Accordingly, it is appropriate to terminate India's designation as a beneficiary developing country effective June 5, 2019," Trump said in a proclamation on Friday, ignoring the plea made by several top American lawmakers as it will cost American businesses over USD 300 million in additional tariffs every year.

On March 4, Trump announced that the US intends to terminate India's designations as a beneficiary developing country under the GSP programme. The 60-day notice period ended on May 3.

The Trump administration has prioritised working with the Government of India to ensure that US companies have a level-playing field, a senior State Department official told reporters on Thursday, hours after Narendra Modi was sworn in as Prime Minister for a second time following his spectacular electoral victory in the general elections.

Under the GSP programme, nearly 2,000 products including auto components and textile materials can enter the US duty-free if the beneficiary developing countries meet the eligibility criteria established by Congress.

India was the largest beneficiary of the programme in 2017 with USD 5.7 billion in imports to the US given duty-free status and Turkey the fifth largest with USD 1.7 billion in covered imports, according to a Congressional Research Service report issued in January.

PTI

Advertisement

Outlook Newsletters

Advertisement
Advertisement
Advertisement

Read More from Outlook

China Has Increased Activities At 'In-Depth' Areas Near Arunachal: Eastern Army Commander

China Has Increased Activities At 'In-Depth' Areas Near Arunachal: Eastern Army Commander

'The annual training exercise that the PLA carries out there has seen some increase in the level of activities in the depth areas,' Lt Gen Manoj Pande said.

Five Killed As Heavy Rains Lash Uttarakhand, PM Modi Takes Stock Of Situation

Five Killed As Heavy Rains Lash Uttarakhand, PM Modi Takes Stock Of Situation

The state authorities have advised Chardham pilgrims not to proceed to the Himalayan temples till the weather improves.

PCB, BCCI Need To Be Friends Before Any Bilateral Series: Ramiz

PCB, BCCI Need To Be Friends Before Any Bilateral Series: Ramiz

PCB chairman Ramiz Raja personally met BCCI president Sourav Ganguly and secretary Jay Shah on the sidelines of the ACC meet in Dubai recently.

US Court Rejects Nirav Modi's Plea For Dismissal Of Fraud Allegations

US Court Rejects Nirav Modi's Plea For Dismissal Of Fraud Allegations

The allegations were made by Richard Levin, the court appointed trustee of three US corporations, indirectly owned by Nirav Modi previously.

Advertisement