India to lose its US’s preferential trade treatment on June 5
The United States would end its preferential trade treatment for India on June 5. This was after American President Donald Trump announced its removal from the Generalized system of Preferences (GSP) on Friday. In other words, the US has thrashed India for refusing to provide American companies with unlimited access to its markets. This will mean that India will lose its preferential trade status with the US.
India is the biggest beneficiary of the GSP that allows preferential duty-free imports of up to $ 5.6 billion from the South Asian nation. Under the GSP, India has been importing textiles goods, auto componenets leather, engineering goods, gems and jewellery, etc. There are nearly 2000 such products.
It may be noted that twenty four members of the US Congress had written a letter to the Indian administration a letter urging it not to terminate India’s access to the GSP. The 60-day notice period ended on May 3. The Indian officials have raised the prospect of higher import duties on more than 20 US goods if Trump drops India from the programme, says a report.
Tensions between the two nations gripped harder when Washington levied 25 per cent tariffs on steel and 10 per cent levies on aluminium while seeking import trade concessions from India.