Washington DC, June 1: The United States is slated to terminate India’s status as a beneficiary developing nation for purposes of Generalized System of Preferences (GSP) – a US preferential tariff program which provides tariff concession on several varieties of products – as US president Donald Trump issued a proclamation on Friday.
The US president said, “The designation of India as a beneficiary developing country is terminated, effective June 5, 2019.”
According to ANI news reports, Trump has also made his decision clear to oust India from a list of “developing country WTO Members” who has been exempt from safeguard measures’ application on CSPC products, including large residential washers.
The President’s proclamation read: “In Executive Order 11888 of November 24, 1975, the President designated India as a beneficiary developing country for purposes of the Generalized System of Preferences … I have determined that India has not assured the United States that India will provide equitable and reasonable access to its markets. Accordingly, it is appropriate to terminate India’s designation as a beneficiary developing country effective June 5, 2019.”
The US move comes at a time when it was entangled in a trade spat with China, as well as, amidst Trump’s threats to hike tariffs on Mexican good exported to America if Mexico does not step up its enforcement forces and put an end to illegal immigration.