India didn't assure equitable, reasonable access to market; US will end Preferential Trade Status: Trump
Washington, Jun 1 (IBNS/UNI): US President Donald Trump has announced his country will end Preferential Trade Status for India which "didn't assure the US equitable and preferential access to market", media reports said.
Trump said India's designation as a beneficiary developing country under the preferential trade programme will end from Jun 5.
"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," Trump said in a White House statement, citing the Trade Act of 1974.
On Mar 4, Trump had announced to end India's designation as a beneficiary developing country under the GSP programme.
Under the GSP programme, around 2,000 products can enter the US without any duty.
India was the biggest gainer under the programme with an import to the US worth $5.7 billion.
However, India said the withdrawal of the status will not impact much as the benefits were worth $190 million.
As of 2017, some 5.6 billion US dollars' worth of Indian imports enjoys duty-free status in accordance with the GSP, making the country the biggest beneficiary of the program, data from the USTR's office showed.
In the statement, the US president also said he would remove India from the list of developing country World Trade Organization members exempt from tariffs on certain crystalline silicon photovoltaic (CSPV) products -- including modules, laminates, panels, and building-integrated materials -- and large residential washers.
Trump, who has complained about US trade deficit with India, issued a presidential proclamation last year removing 50 items from a list of Indian products subject to the GSP, effective from Nov 1, 2018. Washington has a 21-billion-dollar trade deficit with New Delhi in 2018, according to the US Census Bureau.