Current Affairs
United States president Donald Trump on Tuesday announced a plan to end preferential trade treatment for India, withdrawing benefits under a nearly 50-year-old programme for up to $5.6 billion worth of New Delhi’s exports to America.The move comes after over a year of back-and-forth between the two countries, and pressure exerted upon the Trump administration by the American dairy export and medical devices lobbies.
“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 Congress representatives on Tuesday early morning.
According to World Bank data, India is currently the largest beneficiary of the ‘generalised system of preferences’ (GSP) programme, a trade initiative that was first started back in the 1970s.
India’s commerce ministry, however, has downplayed the impact of the move, saying that withdrawal of GSP benefits will have a “minimal and moderate impact”.
“The total GSP benefits amount to about $190 million on overall exports of $5.6 billion between the two countries,” commerce secretary Anup Wadhawan said at a press conference on Tuesday morning.
“We had worked out a meaningful package that covered the US’ concerns but they made additional requests which were not acceptable at this time,” he added. “The GSP system is envisaged as a non-reciprocal benefit to developing countries.”..Read More
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