US President Donald Trump has decided to withdraw the Genialized System of Preferences (GSP) status given to exported goods from India. India has replied to not raising duty on American goods in response. India’s Commerce Secretary Anoop Wadhawan said that the GSP benefits were relatively less He said that both the countries are working on a trade package to overcome each other’s concerns.
Under the GSP program, the US does not charge any $ 5.6 billion (about 400 billion rupees) imported goods from India. US Trade Officers say that GSP status can be withdrawn from India only after 60 days of being informed to the US Parliament and the Indian Government.
In fact, Trump apprised the US Congress of its intention to end the degree given to India and Turkey as a profitable developing country under the GSP program. Trump argued that India has failed to provide the assurance to America that it will provide equitable and fair access to its markets in different areas.
Allegations of trump
In a letter to American Speaker Nancy Pelosi speaker, Trump said that India did not assure the US that it would provide equitable and fair access to India’s markets. Trump said in the letter, “I will continue to assess that the Government of India gives equal and fair access to its markets, according to the GSP eligibility criteria.” A copy of the letter has also been released to the media. In another letter by Trump, he also informed to withdraw the title from Turkey.
Trade deficit drill
Significantly, Trump is struggling to reduce America’s trade deficit and in that order, it seems to be charging India for charging a higher rate on American goods. In a letter to the leaders of the US Parliament, he said, “I am raising this step after serious talks between the US and the Indian government. In the dialogue, I felt that India did not give the US the assurance that it will make the market accessible to America as much as America has made for it.