In what can be a major shock in the offing to India, United States is planning to end the Preferential Trade Treatment with India. US President Donald Trump is contemplating to remove the Preferential Trade Status to India. Preferential Trade Status is key to India’s Trade as the trade treatment allows duty-free entry for USD 5.6 billion worth of India’s exports to the United States. Ending the status would effect India’s exports to the US.
Donald Trump, who has promised to cut US trade deficits, has repeatedly called out India for its high tariffs, and US trade officials said scrapping the concessions would take at least 60 days after notifications to Congress and India.
“I am taking this step because, after intensive engagement between the United States and the government of India, I have determined that India has not assured the United States that it will provide equitable and reasonable access to the markets of India,” Trump said in a letter to congressional leaders.
India’s exports of farm, marine and handicraft products to the United States could be hit. India being the world’s largest beneficiary of the GSP program, ending its participation would be the strongest punitive action for India since Trump took office in 2017.
The US Trade Representative’s Office said removing India from the GSP programme would not take effect for at least 60 days after the notifications, and would be done through a presidential proclamation.
Meanwhile, India has not planned to impose retaliatory tariffs on US goods
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