India loses GSP preferential status
US President Donald Trump has issued a proclamation to terminate India's status as a beneficiary of the Generalised System of Preferences (GSP)
US President Donald Trump has issued a proclamation to terminate India's status as a beneficiary of the Generalised System of Preferences (GSP). The revocation comes into effect today (June 5).
Mr Trump's proclamation notes the GSP statutory requirement for the president to take into account the extent to which a country has assured the US that it will provide equitable and reasonable access to the markets and basic commodity resources of such country and the extent to which the country has assured the US that it will refrain from engaging in unreasonable export practices.
'I have determined that India has not assured the United States that India will provide equitable and reasonable access to its markets,' Mr Trump said in the proclamation.
Pursuant to the GSP proclamation, imports of crystalline silicon photovoltaic cells and large residential washers from India will be subject to Section 201 safeguard tariffs imposed on such products in January 2018.
Imports of those products from India had been exempt from the tariffs, as the presidential Section 201 proclamations exempt imports from developing World Trade Organization member countries if a country's individual share of total imports doesn't exceed 3 per cent and if imports of all such countries with less than 3 per cent import share don't collectively account for more than 9 per cent of total imports of the product.
The Trump administration removed Turkey from GSP on May 17, reports American Shipper.