New Delhi: US President Donald Trump issued a proclamation, terminating the beneficiary developing country status of India under the Generalized System of Preferences (GSP).
In a White House proclamation, the US President stated, “The designation of India as a beneficiary developing country is terminated, effective June 5, 2019.”
In a letter to the Speaker of the House of Representatives and the President of the Senate, the US President wrote: “In accordance with Section 502(f)(2) of the Trade Act of 1974, as amended (Trade Act) (19 U.S.C 2462(f)(2)), I am providing notice of my intent to terminate the designation of India as a beneficiary developing country under the Generalised System of Preferences (GSP) program.”
Trump also ordered to remove India from the list of developing WTO member states exempt from the application of the safeguard measures on CSPV products and large residential washers.
The program, which set zero tariffs for certain goods from a set of 120 developing countries in order to foster trade and economic development, accounts for some $5.6 billion of India’s exports to the U.S, making India the largest GSP beneficiary.
The GSP, which is the oldest and largest US trade preference programme is designed to promote economic development by allowing duty-free entry for products from designated beneficiary countries.
The GSP allows specific products from over 120 developing countries and territories to enter the United States duty-free.