Pro-Indian lawmakers urge Trump to reinstate India’s Preferred Trade Status

US President Donald Trump

Washington, Sep 18 : A pro-Indian group of US lawmakers has urged the Trump administration to reinstate India’s designation as a beneficiary developing nation under the key GSP trade programme as part of a potential trade deal between the two countries as PM Narendra Modi is set to address the event at Houston’s NRG Stadium on Sept. 22.

US President Donald Trump and Prime Minister Narendra Modi will meet on September 22 in Houston and Modi is in desperate need of a trade deal beneficial to India so as to pat his back , back in India amid economic slowdown.

The Trump administration has terminated India’s designation as a beneficiary developing nation under the Generalised System of Preferences or GSP in June with Trump saying that China, India are growing nations and they had tremendous advantages in trade an these countries have levied high tariffs on US products.

The GSP is the largest and oldest US trade preference programme and is designed to promote economic development by allowing duty-free entry for thousands of products from designated beneficiary countries.

In a letter to US Trade Representative Robert Lighthizer, the House members suggest an “early harvest” approach that “would ensure that long-sought market access gains for US industries are not held up by negotiations over remaining issues”.

Led by Congressmen Jim Himes and Ron Estes, the letter to Lighthizer has been signed by 26 Democrats and 18 Republicans, showing the strong, bipartisan support for reinstating GSP benefits for imports from India.

“Companies are telling Congress about the American costs – both in dollars and jobs – of lost GSP eligibility for India,” said Dan Anthony, executive director of the Coalition for GSP on Tuesday.

“The letter shows Congress’s strong, bipartisan support for swift action to reinstate GSP for India and to help constituents that depend on two-way trade,” he said.

While GSP often is seen as a benefit to foreign countries, it is American businesses and workers that have suffered most from its termination to date.

India was the largest beneficiary of the programme in 2017 with USD 5.7 billion in imports to the US given duty-free status and Turkey the fifth largest with USD 1.7 billion in covered imports, according to a US Congressional Research Service report issued in January.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Most Popular

To Top