US withdraws Preferential Trade status of India

0
113
Source: Pixabay
  • Duty breaks for many Indian Products will be withdrawn after 60 days notice period
  • Trump took action after non-tariff barriers increased for American Products in India

US President Donald Trump on Monday announced his plan to end Generalized System of Preference (GSP) for India and Turkey. Under GSP status some 2,000 products were enjoying tax-free status in United States. The products covered under GSP included textile materials, auto components and industrial valves.

India remained the largest beneficiary of the GSP program with $5.7 billion in exports to the U.S. under duty-free status in 2017. Turkey has the fifth largest exports to US with $1.7 billion in GSP program.

Previously, some of the US Companies had raised concerns that
medical devices and dairy shipments to India were being impacted by non-tariff barriers.

In his letter to Congress, President Trump mentioned that India hasn’t assured that it will provide equitable and level playing status to American Products. He also mentioned that Turkey is no longer a developing country hence is not eligible for the program.

The withdrawal of Preferential treatment of Indian Products come at a time when India’s quarterly GDP growth has slowed to 6.6% in Q3 from 7.1% in previous quarter.

LEAVE A REPLY

Please enter your comment!
Please enter your name here