Generalized System of Preferences: The United States has said that it will withdraw the beneficiary status of the Generalized System of Preferences (GSP) program from India and Turkey. US President Donald Trump gave this information to the parliament on Monday. According to US law, this change will be effective after 2 months of notification being issued. Countries in the United States GSP program are given special preference. The United States does not charge the countries on import of a fixed amount from those countries.
What will be the impact on India?
America’s GSP program beneficiary does not have any import duty in the US on products from developing countries. Under this, India gets $ 5.6 billion (Rs 40,000 crore) export exemption. India will not get this advantage if GSP is out. India is the largest beneficiary country of GSP.
United States Trade Representative: At direction of President Donald Trump, US Trade Representative Robert Lighthizer announced that US intends to terminate India’s & Turkey’s designations as Beneficiary Developing Countries under Generalized System of Preferences (GSP) program pic.twitter.com/cMWnnb3vGV
— ANI (@ANI) March 5, 2019
What is America’s plea?
Trump says that he did not get the confidence from India that he would give equal amounts to American products in his market. The US says that due to restrictions in India, it is doing business losses. He has failed to meet the criteria of GSP. The United States began reviewing the conditions set for GSP in April last year.
Trump decides to withdraw India’s name from GSP program list
— ANI Digital (@ani_digital) March 5, 2019
India said – will not have much effect(Generalized System of Preferences)
Commerce Secretary Anup Wadhavan has said that our relations with the US are strong. We are negotiating issues related to business. But will not compromise in case of medical equipment. The economic value of GSP benefits is not very high.
Trump had also threatened last week
The US president had said that the import duty in India is very high. India imposes a 100% tariff on a bike that travels from the US, while the United States does not take any tax on similar goods coming from there. He said that we will also impose equal tariff on Indian imports.
For Turkey, the US has argued that after joining GSP, there has been a significant increase in its (Turkey) economy in nearly four and a half decades. Poverty has decreased and gross national income (GSP) has also increased.
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