{"id":1732,"date":"2019-06-21T04:32:57","date_gmt":"2019-06-21T04:32:57","guid":{"rendered":"https:\/\/www.gkseries.com\/blog\/?p=1732"},"modified":"2019-06-21T04:32:58","modified_gmt":"2019-06-21T04:32:58","slug":"the-us-formally-terminated-indias-eligibility-for-a-duty-free-import-scheme","status":"publish","type":"post","link":"https:\/\/www.gkseries.com\/blog\/the-us-formally-terminated-indias-eligibility-for-a-duty-free-import-scheme\/","title":{"rendered":"The US formally terminated Indias eligibility for a duty free import scheme"},"content":{"rendered":"\n

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nThe United\nStates<\/strong> on formally terminated India\u2019s eligibility for a\nduty-free import scheme<\/strong> for developing countries on 31 May.<\/strong> It\ncited that India\nhas not given assurances <\/strong>it will provide equitable and\nreasonable access to its markets to US companies as required under relevant\nAmerican trade laws. The US President Donald Trump has said the country would end its preferential trade\ntreatment <\/strong>for India on June 5.<\/strong>

India-The\nbiggest beneficary:<\/strong>
\nNotably, India is the biggest beneficiary of the\nUS’ Generalized System\nof Preferences (GSP).<\/strong> It sold an estimated $6.3 billion worth<\/strong> of\ngoods to the United States under this program in 2018.

Background:<\/strong>
\nPresident Trump had conveyed is an intention to\nterminate India\u2019s eligibility for the programme, Generalized System of\nPreferences (GSP), to the US Congress on March 4<\/strong>. And the formal termination\nbecame due on May 4, after the mandatory 60-day notice period.
\nBut the administration held off on the\nproclamation as India was in the middle of elections at the time and there was\npressure from US lawmakers, from both parties, to delay the termination to\nallow more time for negotiations. There was an expectation that India could\navert the termination.
\nBut the Trump administration had concluded much\nbefore, according to people close to the developments, that India would not be\nable to deliver no matter how much additional time it was given.

What\nis Generalized System of Preferences (GSP)?<\/strong>
\nThe Generalized\nSystem of Preferences (GSP)<\/strong> is a U.S. trade program\ndesigned to promote economic growth in the developing world by providing\npreferential duty-free entry for up to 4,800 products from 129 designated\nbeneficiary countries and territories. GSP was instituted on January 1, 1976,\nby the Trade Act of 1974
\nThe GSP program has effective dates which are\nspecified in relevant legislation, thereby requiring periodical reauthorization\nin order to remain in effect
\nGSP expired on July 31, 2013, and was most\nrecently reauthorized on June 29, 2015 (effective July 29, 2015) for a period\nof two and a half years.  The relevant legislation permits retroactive\nextension of GSP benefits. Recently the USA has excluded India from the list of\nbeneficiaries of this program\n\n\n\n<\/p>\n","protected":false},"excerpt":{"rendered":"

The United States on formally terminated India\u2019s eligibility for a duty-free import scheme for developing countries on 31 May. It cited that India has not given assurances it will provide equitable and reasonable access to its markets to US companies as required under relevant American trade laws. The US President Donald Trump has said the country would end its preferential trade treatment for India on June […]<\/p>\n","protected":false},"author":13,"featured_media":1733,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[45],"tags":[],"offerexpiration":[],"class_list":["post-1732","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-current-affairs-articles"],"_links":{"self":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts\/1732","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/comments?post=1732"}],"version-history":[{"count":1,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts\/1732\/revisions"}],"predecessor-version":[{"id":1734,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts\/1732\/revisions\/1734"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/media\/1733"}],"wp:attachment":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/media?parent=1732"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/categories?post=1732"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/tags?post=1732"},{"taxonomy":"offerexpiration","embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/offerexpiration?post=1732"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}