Insta
Donald Trump Ends GSP Trade Privileges For India Citing Lack Of ‘Equitable Access’ For US Exporters In Its Markets
US President Donald Trump (Isaac Brekken/Getty Images)
Even as the new Modi government takes charge for its second term in power, the United States (US) government led by its President Donald Trump terminated India's designation as a beneficiary developing nation under the key Generalised System of Preferences (GSP), reports The Economic Times.
This marks a significant setback for India whose exporters had been benefiting from the oldest and the largest US trade preference programme that was designed to promote economic development by allowing duty-free entry for thousands of products from designated beneficiary nations.
"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," President Trump said on Friday (31 May).
Taking the decision and repealing the GSP privileges accorded to India, president Trump also ignored the plea made by several top American lawmakers that the decision would in return cost American businesses over $300 million in additional tariffs every year.
It should be noted that India was the largest beneficiary of the programme in 2017 with $5.7 billion worth of exports of nearly 2,000 products including auto components and textile materials which were allowed to enter the US duty-free.
Support Swarajya's 50 Ground Reports Project & Sponsor A Story
Every general election Swarajya does a 50 ground reports project.
Aimed only at serious readers and those who appreciate the nuances of political undercurrents, the project provides a sense of India's electoral landscape. As you know, these reports are produced after considerable investment of travel, time and effort on the ground.
This time too we've kicked off the project in style and have covered over 30 constituencies already. If you're someone who appreciates such work and have enjoyed our coverage please consider sponsoring a ground report for just Rs 2999 to Rs 19,999 - it goes a long way in helping us produce more quality reportage.
You can also back this project by becoming a subscriber for as little as Rs 999 - so do click on this links and choose a plan that suits you and back us.
Click below to contribute.
Latest
