Generalized System of
Preference (GSP) is the largest and oldest US trade
India was the largest beneficiary of the GSP programme in 2017 with $5.7 billion in imports to the US given duty-free status.
Reason for US withdrawing India’s GSP benefits:
The move was taken on determining that India has not committed to provide “equitable and reasonable access to its markets” for the US.
- US’s trade imbalance with India,
- No access to Indian market for US dairy,
- Medical device industry and
- Issues related to data localisation norms.
On March 4, Trump announced that the US intends to terminate India’s designations as a beneficiary developing country under the GSP programme. The 60-day notice period ended on May 3.