WASHINGTON: US President Donald Trump mentioned on Monday he intends to finish India’s preferential commerce therapy below a program that permits $5.6 billion value of Indian exports to enter america duty-free.
“I’m offering discover of my intent to terminate the designation of India as a beneficiary creating nation below the Generalized System of Preferences (GSP) program,” Trump mentioned in a letter to congressional leaders.
“I’m taking this step as a result of, after [an] intensive engagement between america and the Authorities of India, I’ve decided that India has not assured america that it’s going to present equitable and affordable entry to the markets of India,” Trump mentioned.
Trump, who has vowed to scale back US commerce deficits, has repeatedly known as out India for its excessive tariffs.
The US items and companies commerce deficit with India was $27.three billion in 2017, in accordance with the US Commerce Consultant’s Workplace.
India is the world’s largest beneficiary of the GSP program and ending its participation can be the strongest punitive motion in opposition to India since Trump took workplace in 2017.
“I’ll proceed to evaluate whether or not the Authorities of India is offering equitable and affordable entry to its markets, in accordance with the GSP eligibility standards,” he mentioned.