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US President Ends Preferential Trade Status For India
BUSINESS ECONOMICS
|June 16-30, 2019
Few hours after Narendra Modi took oath as the Prime Minister of India for his second term, US President Donald Trump confirmed that his administration will withdraw the designation of Generalised System of Preference (GSP) from India.
GSP is the largest and oldest US trade preference programme allowing duty-free imports to the US for thousands of products. Internationally, the legal basis for the GSP programme is instituted in the Enabling Clause (EC). It is a platform established under the international trade regime of the World Trade Organisation (WTO) for developed countries to offer preferential trade treatment on a non-reciprocal basis for import of products from developing countries. This preferential trade system started for India in 1975.
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