SME Times News Bureau | 05 Mar, 2019
Commerce Secretary Anup Wadhawan on Tuesday said the US
withdrawal of benefits for Indian exports under the Generalised System of
Preferences (GSP) programme will not have any major impact on overall Indian
exports to the US as the concessions availed under the scheme were
"minimal".
"Total GSP benefits availed by India under the GSP
programme were to the tune of $190 million on a trade $5.6 billion. So, the
benefits both in an absolute sense, and as a percentage of the trade involved,
are very minimal and moderate," he said.
US President Donald Trump has announced that he is ending
India's $5.6 billion trade concessions under the Generalised System of
Preferences (GSP) programme, accusing New Delhi of not providing Washington
"equitable and reasonable access" to its markets.
Trump, who is on a mission to expand marker access abroad and end trade
deficits, made the announcement on Monday in a letter to House Speaker Nancy
Pelosi and Vice President Mike Pence in his capacity as the Senate President.
The US Trade Representative's Office (USTR) said that the preferences will end
in 60 days after the notification to Congress and the Indian government.
Meanwhile, Trump said that he will continue to monitor if India is
"providing equitable and reasonable access to its markets" and meet
the GSP eligibility criteria.
India had opposed proposals to end the GSP saying that it would be
"discriminatory, arbitrary" and hurt the country's development.
The Commerce Secretary also said the US went ahead with the
withdrawal of benefits despite the Indian government working out on an "extensive,
reasonable, meaningful package which covered almost all the US concerns".
"Of course there were some additional requests beyond that, which could
not be accepted at this time," he said.
The US decision comes as the country is reported to be
making headway in trade negotiations with China aimed mainly at cutting
American trade deficits with a deal expected soon.
Ironically, a trade group warned that taking ending GSP for India could end up
helping China.
