Trump ends $5.6 billion GSP trade preference for India |
NEW YORK — As he hardens his stand on trade, President Donald Trump is ending India`s $5.6 billion trade concessions under the Generalized Scheme of Preferences program with effect from June 5. "I have determined that India has not assured the United States that India will provide equitable and reasonable access to its markets," he said in a proclamation issued May 31.Accordingly, he said, it is appropriate to terminate India`s designation as a beneficiary developing country effective June 5, 2019." The end to GSP comes ahead of the meeting between Trump and Prime Minister Narendra Modi in Japan later this month during the G20 Summit. Trade issues are likely to come up during their meeting.Trump is on a mission to end the massive U.S. trade deficits and has imposed or proposed higher tariffs on imports from several countries while involved in a trade war with China. On May 29, he announced punitive tariff hikes on imports from Mexico over its leniency towards immigrants from Central America.Turkey was also stripped of its GSP trade concessions along with India.India, which came under the GSP program in 1975, is its largest beneficiary in the U.S. However, India`s GSP exports of $5.6 billion were only a small part of the total exports worth $76.7 billion in 2017, according to the US Trade Representative.
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