WASHINGTON: The US President Donald Trump has unveiled his intention to withdraw the preferential trade status granted to India, under which, New Delhi was allowed to export its products worth $5.6 billion to the United States without paying any duty.
The move followed the Indian inability to meet the required criteria, which had bound India to open its markets for US products.
“I am providing notice of my intent to terminate the designation of India as a beneficiary developing country under the Generalized System of Preferences (GSP) program,” Donald Trump said in his letter written to Congressional leaders on Monday.
“I am taking this step because, after intensive engagement between the United States and the Government of India, I have determined that India has not assured the United States that it will provide equitable and reasonable access to the markets of India,” the US president said.
Established in 1974 and having covered 120 countries, the GSP is the largest and oldest US trade preference program.
Full text of the Letter from the US President Donald Trump to the Speaker of the House of Representatives and the President of the Senate
“Dear Madam Speaker: (Dear Mr. President:)
In accordance with section 502(f) (2) of the Trade Act of 1974, as amended (Trade Act) (19.U.S.C. 2462)(f) (2)), I am providing notice of my intent to terminate the designation of India as a beneficiary developing country under the Generalized System of Preferences (GSP) program.
I am taking this step because, after intensive engagement between the United States and the Government of India, I have determined that India has not assured the United States that it will provide equitable and reasonable access to the markets of India as set forth in section 502 (c) (4) of the Trade Act (19 U.S.C. 2462)(c) (4)).
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.
Sincerely,
Donald J. Trump”
