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Sun, 19 May 2019

Northeast Today

US plans to ‘terminate’ India’s designation as GSP beneficiary

US plans to ‘terminate’ India’s designation as GSP beneficiary
March 05
12:40 2019

NET Bureau

The United States Tuesday has announced its intention to “terminate” India’s designation as a beneficiary of its Generalised System of Preferences (GSP) because it failed to provide assurances that it will give the US “equitable and reasonable” access to its markets in numerous sectors.

The move comes alongside a letter reportedly sent by US president Donald J Trump to the Speaker of the US House of Representatives stating his intent to terminate India’s position as a GSP beneficiary as New Delhi has not assured equitable and reasonable access to its markets.

“At the direction of President Donald J. Trump, U.S. Trade Representative Robert Lighthizer announced today that the United States intends to terminate India’s and Turkey’s designations as beneficiary developing countries under the Generalized System of Preferences (GSP) program because they no longer comply with the statutory eligibility criteria,” stated the office of the US Trade Representative in a media release.

“India’s termination from GSP follows its failure to provide the United States with assurances that it will provide equitable and reasonable access to its markets in numerous sectors,” it stated.

The United States launched an eligibility review of India’s compliance with the GSP market access criterion in April 2018. “India has implemented a wide array of trade barriers that create serious negative effects on United States commerce. Despite intensive engagement, India has failed to take the necessary steps to meet the GSP criterion,” stated the USTR.

“By statute, these changes may not take effect until at least 60 days after the notifications to Congress and the governments of India and Turkey, and will be enacted by a Presidential Proclamation,” it added.

Turkey’s termination follows a finding that it is “sufficiently economically developed” and should no longer benefit from preferential market access to the United States market.

Under the United States GSP program, certain products can enter the United States duty-free if beneficiary developing countries meet the eligibility criteria established by its Congress.

GSP criteria include, among others, respecting arbitral awards in favor of United States citizens or corporations, combating child labor, respecting internationally recognized worker rights, providing adequate and effective intellectual property protection, and providing the United States with equitable and reasonable market access, stated the USTR. Countries can also be graduated from the GSP program depending on factors related to economic development, it added.

Source: The Indian Express

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