US President Donald Trump Terminates Preferential Trade Status for India Under GSP

Washington - U.S President Donald Trump has abolished the status of the beneficiary developing country, obtained by India under the GSP trade program. He said that India has not given the assurance to US by not giving 'equal and logical access to its market'. The Generalized System of Preferences (GSP/General Preferential System) is America's largest and old trade preferential program. Its goal is to promote economic development by allowing thousands of products to the beneficiary country to import without any entry fee.  Trump said on Friday that I have decided that India has not given assurance to give America equal and logical access to its market. Accordingly, it is absolutely right to terminate the status of beneficiary developing country, India from June 5, 2019. Trump has taken this decision by refusing the appeal of top U.S lawmakers in this regard. Members of the parliament said that the move would give US industrialists an extra $300 million per year. President Trump had said on 4th of March that the beneficiaries received by India under GSP are considering eliminating the status of developing countries. The 60 days notice received by India in this regard has expired on May 3.
Let us tell you that the countries included in the US GSP program are given special preference. US does not charge on the import of a fixed amount from those countries. Now the question arises that What is GSP ? and what will happen to India from withdrawn. General preferential system (GSP) is the oldest and big system of the preferential and large system of US countries. Under this, the countries received the licence to import fix amount of products without any charges. India has been the largest beneficiary in the 2017. This benefit is raised on those products which are exported to the US. In 2017, India has exported $5.7 billion in the US.

The Generalized System of Preferences (GSP) is the US Trade Program under which beneficiary countries import goods in US without any tax for economic progress in developing countries. The United States has given this facility to 129 countries of the world, where 4800 products are imported. US has formed GSP on January 1, 1976 under Trade Act 1974.
Beneficiary of the US GSP program does not seem to be an import duty in the US. Under this, India gets discount of $5.6 billion (Rs 40,000 crore). India will no longer get this advantage after termination of GSP. India is the largest beneficiary country of GSP.

However, Commerce Secretary Anup
Wadhawan says that our relationship with America is strong. We are negotiating on issues related to business. But there will not be compromised in the case of medical devices. The economic value of GSP's advantages is not too much. The conversations with US will continue about this matter.

The trump says that they have taken this decision because they have not been able to get these assurance from India that they will give the existen discounts to American products in their market. He says that due to the Restrictions in India, it made a huge loss. India has failed to complete the criteria of GSP. The United States had started reviewing the fixed conditions for GSP in April.
The US started the review of the fixed conditions for GSP in April last year. The US has argued for Turkey that after joining GSP, in the four-half decade, (Turkey) economic development increased significantly, the poverty has decreased and gross national income (GSP/Gross Domestic Product) has also increased.

The US President said that the import duty in India is very much. India has 100 percent tariffs at the bikes (Harley Davidson), on the other hand US does not take any tax on the same accessories from India, he said that they will also take equal tariff on Indian imports. US said that due to the restrictions in India, they had to suffer from a major loss.
US President Donald Trump Terminates Preferential Trade Status for India Under GSP US President Donald Trump Terminates Preferential Trade Status for India Under GSP Reviewed by SHERE KHOJRAHA on June 02, 2019 Rating: 5

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