• search
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

US to terminate preferential trade programme with India on June 5: Trump

|

Washington, June 01: The Donald Trump administration has terminated the preferential trade programme with India, which will come into effect June 5, 2019.

File photo of Donald Trump

"I have determined that India has not assured the US that it will provide equitable and reasonable access to its markets. Accordingly, it is appropriate to terminate India's designation as a beneficiary developing country effective June 5, 2019," Trump said in a proclamation on Friday, ignoring the plea made by several top American lawmakers as it will cost American businesses over $300 million in additional tariffs every year.

With this, the United States has ended India's designation as the beneficiary developing country under the key GSP trade programme. The programme allows emerging countries to export goods to the United States without paying duties.

Donald Trump in March had announced his intention to remove India from the decades-old Generalized System of Preferences (GSP) program over what the United States said was lack of access to India's market.

The Trump administration has prioritised working with the Indian government to ensure that US companies have a level-playing field, a senior State Department official told reporters on Thursday, hours after Prime Minister Narendra Modi was sworn in for a second time following his spectacular electoral victory in the general election.

Under the GSP programme, nearly 2,000 products including auto components and textile material can enter the US duty-free if the beneficiary developing countries meet the eligibility criteria established by the US Congress.

India was the largest beneficiary of the programme in 2017 with $5.7 billion in imports to the US given duty-free status and Turkey the fifth largest with $1.7 billion in covered imports, according to a Congressional Research Service report issued in January.

For Daily Alerts
Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Oneindia sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Oneindia website. However, you can change your cookie settings at any time. Learn more