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economy | IST

No plan to issue retaliatory tariffs on US, says commerce secretary

Mini

Trump on Monday said he intends to end the GSP program that allows $5.6 billion worth of Indian exports to enter the United States duty-free.

India could not go ahead with the Generalized System of Preferences (GSP) programme as there were some demands from the US which India could not accommodate, said Anup Wadhawan, commerce secretary, said after US President Donald Trump said he intends to end India's preferential trade treatment.
The US has given a 60-day notice on the withdrawal of GSP benefits, he added.
Trump on Monday said he intends to end the GSP program that allows $5.6 billion worth of Indian exports to enter the United States duty-free. The GSP duty benefits stand at $190 million over a trade of $5.6 billion.
US medical devices and dairy sectors had approached the government to receive the GSP benefits, Wadhawan said, adding that India was required to take into account the fair pricing model on the medical devices for development concerns.
Moreover, the government does not plan to impose retaliatory tariffs on US goods, Wadhawan added.
The move would not lead to trade hurdles as the "actual benefit" to India was only $250 million a year, reported Reuters, citing, a government source. The GSP with the US is more symbolic of the strategic relationship, the report added.
India is the world's largest beneficiary of the GSP program and ending its participation would be the strongest punitive action against India since Trump took office in 2017.
"I will continue to assess whether the Government of India is providing equitable and reasonable access to its markets, in accordance with the GSP eligibility criteria," Trump had said.
(With inputs from Reuters)