Washington: US President is all set to end preferential trade treatment to India. As per the US’s Generalized System of Preferences (GSP) India gets exports worth $5.6 billion (approximately).
The program, which sets zero tariffs for certain goods from a set of 120 developing countries in order to foster trade and economic development, accounts for some $5.6 billion of India’s exports to the U.S, making India the largest GSP beneficiary.
US-India trade ties were garbled after India put in new rules to conduct business in the country that severely restricted e-commerce giants Amazon.com Inc and Walmart Inc backed Flipkart.
The Trump administration reviews that GSP eligibility list regularly and has taken this decision based on the reviews. The officials allege that India has put a bunch of trade barriers that created negatively affected the economy of the US.
India is the world’s largest beneficiary of the GSP program and ending its participation would be the strongest punitive action for India since Trump took office in 2017.
The US Trade Representative’s Office said removing India from the GSP programme would not take effect for at least 60 days after the notifications, and would be done through a presidential proclamation.