The US President Donald Trump said that the United States would end its preferential trade treatment for India on 5th of June. Trump had earlier announced intentions of removing India from the Generalized System of Preferences (GSP) program in early March.
Trump said on Friday, “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 ignored several pleas of several US lawmakers as they claimed that it will cost American businesses over USD$ 300 million in additional tariffs every year.
In the first week of March this year, Trump announced that the US intends to terminate India’s designations as a beneficiary developing country under the GSP programme, and the 60 day notice period ended on May 3.
However, 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.
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, as per a Congressional Research Service report issued in January.
Source : Various