The US is mulling over restoring India’s beneficiary status under GSP, on receiving a fair proposal from India.
Indian exporters may soon again export select goods to the US markets without a levy of import duty in the country as the Donald Trump administration is likely to restore India’s trade preference under the Generalized System of Preference (GSP). A high retaliatory tariff on imports from the US is among the major reasons forcing the US to make this move. The US is mulling over restoring India’s beneficiary status on receiving a counterbalancing proposal from New Delhi, PTI reported citing a top Trump administration official. In the month of June 2019, the Donald Trump government terminated India’s designation as a beneficiary developing nation under the GSP trade programme, blaming India for not providing equitable and reasonable access to its markets.
The GSP is the US trade preference programme, which is designed to promote economic development by allowing duty-free entry for products from designated beneficiary countries. After India’s ambassador, Taranjit Singh Sandhu informed that India’s supply of antimalarial drug hydroxychloroquine (HCQ) to the US has given the two countries enough confidence and they could strike a smaller trade deal in the coming weeks, US trade representative Robert Lighthizer told members of the Senate Finance Committee that America is currently negotiating the GSP with India.
Source: Financial Express
