India is no longer a beneficiary of the Generalized System of Preference (GSP), the United States’ oldest and largest trade preference programme
Following an earlier warning, US President Donald Trump has now terminated India’s preferential trade status.
In March, the United States President announced that he will strip India of its beneficiary designation under GSP. The 60-day notice period for the same ended May 3, 2019.
In a proclamation, President Trump said, “I have determined that India has not assured the US that it will provide equitable and reasonable access to its markets.”
He added, “Accordingly, it is appropriate to terminate India’s designation as a beneficiary developing country effective June 5, 2019.”
The Generalized System of Preference programme boosts economic and trade growth for beneficiaries – primarily developing nations.
Under the GSP, thousands of Indian products were allowed duty-free entry into the US markets. With a profit of nearly $6 billion, India was also the largest beneficiary of the programme in 2017.
Prior to his decision, President Donald Trump asserted that India had not assured “equitable and reasonable access to its markets.”
The announcement came soon after Indian Prime Minister Narendra Modi’s swearing-in ceremony on Friday.