US to end preferential trade with India

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Acting on US President Donald Trump’s direction, Washington is set to end preferential trade status granted to India and Turkey.

According to a statement of the Office of the US Trade Representative, Washington “intends to terminate India’s and Turkey’s designations as beneficiary developing countries under the Generalized System of Preferences (GSP) program because they no longer comply with the statutory eligibility criteria”.

Further adding that India has failed to provide assurances that it would allow required market access, while Turkey is “sufficiently economically developed” that it no longer qualifies.

“Certain products” can enter the US without taxes if countries meet eligibility criteria including “providing the United States with equitable and reasonable market access”, under the GSP program,

As per the statement, India, “has implemented a wide array of trade barriers that create serious negative effects on United States commerce”.

In a letter written by Trump, which was released by the White House, the change for India came after “intensive engagement” between New Delhi and Washington.

“I will continue to assess whether the government of India is providing equitable and reasonable access to its markets, in accordance with the GSP eligibility criteria,” the statement quoted the president saying.

 

 

(With Inputs from AFP)

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