Trump announced to end preferential trade terms for India
05 March, 2019
President Donald Trump announced on Monday to end preferential trade terms for India. Trump sent letters to the Congress showing his intention to terminate the trade benefits which allow duty-free entry of $5.6 billion worth of India’s exports to the United States.
Top Indian trade official Anup Wadhawan said the withdrawal of the Generalized System of Preferences (GSP) for Indian products would have a limited impact. “I am taking this step because, after the intensive engagement between the United States and the Government of India, I have determined that India has not assured the United States that it will provide equitable and reasonable access to the markets in India” Trump mentioned in a letter to the congressional leaders.
India is the world’s largest beneficiary of the GSP program and terminating its participation would have a huge negative impact on its economy.
The action would be effective after 60-days through presidential proclamation, said a US Trade Representative. A government source from New Delhi said that they hope that the termination of India from GSP program would not lead to major trade hurdles.
“I will continue to assess whether the Government of India is providing equitable and reasonable access to its markets in accordance with the GSP eligibility criteria,” read Trump’s letter, a copy of which was released to the press..