Current Affairs

India's preferential Trade Status under GSP Programme

The United States has terminated India's preferential trade status under the Generalized System of Preference (GSP) programme.
India's preferential Trade Status under GSP Programme

Details:

  • Generalized System of Preference (GSP) is the largest and oldest US trade preference programme.
  • India was the largest beneficiary of the GSP programme in 2017 with $5.7 billion in imports to the US given duty-free status.

Reasons for US withdrawing India's GSP benefits:

  • US's trade imbalance with India
  • No access to Indian market for US dairy
  • Medical device industry
  • Issues related to data localisation norms
  • The move was taken on determining that India has not committed to provide "equitable and reasonable access to its markets" for the US.

One must know:

  • On March 4, President 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.

Question:

Q. Which country has terminated India's preferential trade status under the Generalized System of Preference (GSP) programme?
a. United States
b. China
c. United Kingdom
d. France
India's preferential Trade Status under GSP Programme India's preferential Trade Status under GSP Programme Reviewed by Neha Verma on June 06, 2019 Rating: 5

No comments:

Join 8,000+ readers and get free notes in your email