US President Donald Trump plans to open a new front in his trade wars on Monday (4.3.2019) with a plan to end preferential treatment for India that allows duty-free entry of exports to the United States worth up to US$5.600 billion.
India played down the impact of the move and said it would avoid retaliatory tariffs in talks with the U.S., but the country's opposition could seize on the issue to criticize Prime Minister Narendra Modi ahead of general elections this year..
Trump, who has pledged to reduce the U.S. trade deficit, has repeatedly singled out India for its high tariffs, and U.S. trade officials have said it would take at least 60 days to remove India's trade benefits after notifications to Congress and the Indian government.
"I am taking this step because, after extensive engagement between the United States and the Government of India, I have determined that India has not assured the United States that it will provide fair and reasonable access to India's markets," Trump said in a letter to congressional leaders.
India is the largest beneficiary of the Generalized System of Preferences (GSP) program, which dates back to the 1970s, and ending its involvement would be the biggest punitive action for the South Asian nation since Trump took office in 2017.
The move comes as the United States and China appear close to a deal that would prevent U.S. tariffs on Chinese goods worth at least $200.000 billion.
Agricultural, marine and handicraft products are among India's exports most likely to be affected by the US decision, Ajay Sahai, director general of the Federation of Indian Export Organisations, told Reuters.
Source: Reuters
Aduana News is the first Argentine customs newspaper to launch its digital version. With 20 years of experience, its publications and initiatives aim to provide the most relevant knowledge on customs issues in order to contribute to safe trade in the region.
