India downplays impact of U.S. GSP withdrawal

Donald Trump says he plans to end India's preferential trade treatment

But the Trump administration will end "India's and Turkey's designations as beneficiary developing countries" saying they no longer qualified for the reduced tariffs, US Trade Representative Robert Lighthizer said in a statement late Monday.

Government on Tuesday said US' withdrawal of duty benefits to its $5.6 billion of exports will not have a major impact on India's bilateral trade and denied United States president Donald Trump's accusation of the country having high tariffs.

Just as the US seemed on the cusp of ending its internecine trade war with China, President Donald Trump has set the stage for another tariff standoff, this time with India and Turkey.

President Donald Trump said India has failed to assure the U.S. it will provide reasonable access to its markets.

According to the U.S. Trade Representative's Office, the U.S. goods and services trade deficit with India was $27.3 billion in 2017.

India is the largest beneficiary of the GSP exporting goods worth $5.6 billion to the U.S. under the programme.

It may be recalled here that the U.S. had launched an eligibility review of India's compliance with the GSP market access criterion in April 2018.

This reduction has happened in the face of a rising overall USA trade deficit, including with some other major economies.

Will The Lakers Make The Playoffs? Postseason Chances After Loss To Bucks
Despite tallying below his 27-point average, Antetokounmpo still wound up with a double-double of 16 points and 15 rebounds. LeBron James and Brandon Ingram led the way for the Lakers, each matching Bledsoe's game-high of 31 points.

Death toll rises to 18 in Somalia bombing, clashes with militants
The area, dotted by hotels, cafeterias and supermarkets, is frequented by influential people including expatriates and government officials.

‘The Voice’ Singer Janice Freeman Dead At 33 From Apparent Blood Clot
According to TMZ , Freeman was in her Pasadena, Calif. home when she complained to her husband Dion that she couldn't breathe. Freeman died in her home in West Covina, California , at the age of 33. "You got somebody that got your back".

The move to drop preferential trade treatment for India has raised fears that Trump could be opening a new front in his trade wars. However, India deferred implementation of the decision as talks were going on between the two sides for a trade package.

The move affects just a fraction of India's trade flows, yet it comes weeks before India's national elections, and just as Prime Minister Narendra Modi's government is trumpeting its foreign policy prowess and military strength following a stand-off with Pakistan. "The customs duties themselves, you're talking about a couple hundred million bucks, maximum". The GSP lowers U.S. duties on exports from 121 developing countries. "They charge 100%. When India sends a motorcycle to us, we brilliantly charge them nothing".

Many experts are viewing this move as the US' reaction to some measures taken by India in the last couple of years, in terms of capping the prices of medical devices and a steep rise in tariffs on some goods that are of interest to American firms. The issue of Indian tariffs being high has been raised from time to time.

On other concerns being raised by the United States related to duty cut on IT products, Wadhwan said India's duties are very moderate on those items and they are not "import stopping".

Even if Modi doesn't want to raise the temperature, "the discourse in this country has been that America needs India to balance China", said Harsh Pant, an worldwide relations professor at King's College London.

It comes as the United States negotiates with China to resolve a damaging trade war.

Adding that the GSP benefits were "relatively moderate", Wadhawan added that the decision will not impact India's relations with the US. The reckoning is that some day in the near future India would have had to grow out of the GSP regime (as China has done), which was devised on the 1970s to help poor developing world countries, and that day might well be now.

"Evidently, all the flexibility we showed did not meet their requirements", the official added.

Related news:

Hot News

isis-killer-beheading-video-story-top Zedrick Woods runs fastest 40 of 2019 NFL Combine
Mar 06, 2019 - 00:58
Because one of the strengths of Savage's game is close on the ball-carrier and the boom - and there is no hitting at the Combine. He's a bigger safety known for his hard hits and run-stopping but proved he can run himself with a 4.45 40-yard dash time.

isis-killer-beheading-video-story-top Fast food again served at White House event with Trump
Mar 05, 2019 - 01:12
He said he could have had the White House chef prepare food for the NDSU team this week, but then said, "I know you people". Trump previously brought in fast food during the government shutdown for the Clemson Tigers .

isis-killer-beheading-video-story-top Drivers capture avalanche tearing down side of Colorado mountain
Mar 05, 2019 - 01:09
A second video, taken from another vehicle, shows a column of snow coming down the mountainside toward the motorists below. Shortly after 5 p.m., emergency crews responded to another avalanche down the road near Copper Mountain.

isis-killer-beheading-video-story-top Paul likely to cast final needed vote to cancel Trump's emergency declaration
Mar 05, 2019 - 00:56
Lisa Murkowski (Alaska), Susan Collins (Maine) and Thom Tillis (N.C.) in announcing his intention to vote against the declaration. Senate Majority Leader Mitch McConnell (R-Ky.) said on Wednesday that he planned a vote on the measure within three weeks.

isis-killer-beheading-video-story-top Moon calls for swift resumption of U.S.-North Korea talks
Mar 05, 2019 - 00:48
In an appearance on CBS News' " Face the Nation ", Bolton said there is "no expiration date" for talks on denuclearization. Rogers argued that the North Korean leader would see the cancellation as a "minor victory".

isis-killer-beheading-video-story-top Ole Gunnar Solskjaer gives latest Man United injury update on Alexis Sanchez
Mar 05, 2019 - 00:42
Solskjaer's side will be aiming to overturn a 2-0 deficit in the Champions League last 16, second leg at PSG on Wednesday. Ole Gunnar Solskjaer appears to be edging closer towards being named permanent manager at Manchester United .

isis-killer-beheading-video-story-top Donald Trump warns against 'socialist nightmare' at conservative conference
Mar 04, 2019 - 00:48
The speech came days after Trump's former attorney and fixer Michael Cohen accused Trump of misdeeds in a daylong House hearing. Williams was punched recruiting for the conservative group Talking Points USA, inset.

isis-killer-beheading-video-story-top Trump leaves Hanoi without a deal after abrupt end to Kim summit
Mar 04, 2019 - 00:43
The United Nations and the USA tightened sanctions on North Korea after a flurry of nuclear and missile tests in 2016-2017. Trump added that he still believes the country still has "huge potential" and he'd like to "keep the relationship".

isis-killer-beheading-video-story-top Roy Williams confirms collapse was due to vertigo
Mar 04, 2019 - 00:42
Williams addressed the incident with the press after the game, and told them he went down with a case of vertigo. Clemson trailed 78-75 with 39.3 seconds to play when North Carolina called a timeout.

isis-killer-beheading-video-story-top Huawei P30 Pro Certification Confirms 40W SuperCharge Charging
Mar 04, 2019 - 00:27
There's no fingerprint scanner present anywhere that we can see, so we can safely assume that we'll find it under the display. The photo, posted by WinFuture , claims to show the new P30 Pro and it appears to arrive sporting some decent updates.

isis-killer-beheading-video-story-top CALL OF DUTY MODERN WARFARE 2 REMASTER Gets A European Rating
Mar 04, 2019 - 00:26
Call of Duty Modern Warfare 2 Remastered has been rated by PEGI (Pan European Game Information). Call of Duty Modern Warfare 2 has been released back in 2009 on PC, PS3 and Xbox 360.

isis-killer-beheading-video-story-top Maple Leafs' John Tavares jeered in return to hostile Nassau Coliseum
Mar 03, 2019 - 01:55
NY and Toronto sat tied after the first period, but the Islanders exploded for three goals in the second to take a 4-1 lead. Asked what he would say to the fans if he was given a microphone, Tavares said: "I've made that message many times".

isis-killer-beheading-video-story-top Jonas Brothers Are Back, New Single Drops Tonight (Watch Teaser Video)
Mar 03, 2019 - 01:51
It's easy to say that Jonas Brothers fans will be counting down the moments until midnight as they wait for the single to drop. It didn't sound great for the JoBros , as Nick had shared on the morning show at the time: "We're family first..."

isis-killer-beheading-video-story-top Sarri not sure about Kepa's return to Chelsea team
Mar 03, 2019 - 01:44
On a personal note this is something I started working towards seven years ago when I was a Spurs player. Cahill was linked with a January move to relegation-threatened Fulham, which did not transpire.

isis-killer-beheading-video-story-top Manuel Pellegrini targeting West Ham top-six finish next season
Mar 03, 2019 - 01:14
The 27-year-old was expected to return soon and went back to light training but he has felt pain in his ankle joint. The Chilean said: "To be generous, (it was) a little soft but (that is being) too generous".