Termination of GSP will have minor impact on exports |
After the United states` decision to terminate India`s designation under the Generalized System of Preferences programme, India in a prompt reply has said that this move will have a very marginal impact. Talking to the press, Indian Commerce Secretary Anup Wadhawan said that India was ready to offer the US greater market access in agricultural products but the negotiations failed. The GSP programme allows duty-free entry of around 1,900 products from India into the US, benefiting exporters of textiles, engineering, gems and jewellery and chemical products. The impact of the US action on India`s exports will not be very significant as the duty benefits are worth only $190 million on exports worth $5.6 billion. India is likely to impose retaliatory tariffs on $10.6 billion worth of goods imported from the US, after the Trump administration decided to scrap duty benefits on $5.6 billion worth of exports from India by May, following the collapse of trade negotiations.
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