Monday, President Trump setup to open a new front in his trade wars with a plan to end preferential trade treatment for India that allows duty-free entry for $5.6-B worth of the country’s exports to the United States.
“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,” President Trump said in a letter to Congressional leaders.
India is the world’s largest beneficiary of the GSP program and ending its participation would be the strongest punitive action for the South Asian nation since President Trump took office in Y 2017.
The US Trade Representative’s Office said removing India from the Generalized System of Preferences (GSP) program would not take effect for at least 60 days after the notifications, and would be done through a Presidential proclamation.
The preferential trade treatment brings “actual benefit” of $250-M a year to India a government source said in the capital, New Delhi, adding that it hoped the planned withdrawal would not lead to trade hurdles.
“GSP is more symbolic of the strategic relationship, not in value terms,” added the source, who declined to be identified ahead of a news briefing by the Indian trade ministry.
I just learned that no retaliatory action will happen.
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