Published On: Tue, Mar 5th, 2019

US to relook its preferential trade treatment to India

US Trump India PreferentialTradeTreatment EuropeVartha

The United States supports many developing countries. The Generalised System of Preference is one of the ways it backs the developing countries. The policy allows certain goods from developing countries to benefit from barrier free access to the United States market. Nearly 120 developing countries benefit from the GSP (also called the preferential trade treatment). India is the biggest beneficiary of the policy.

Shockingly, around few hours before, United States President Donald Trump has indicated that he would relook the preferential trade benefit offered to India. He has justified his plan, citing the disinterest India shows to let the US company’s freely utilise the benefit of the Indian market.

The US, it seems, is unhappy with the way India’s latest regulations on e-commerce platforms, medical device businesses and ICT products.

The latest move can be assumed as a retaliatory action from the part of the United States to the latest regulations India has imposed recently to stifle the aforesaid sectors.

At this moment, it remains unclear whether there are any other dimensions to the plan proposed by the US president.

If the US drops its preferential trade treatment towards India, several Indian goods will be seriously affected.

The US is one of the biggest trade partners of India. The world’s largest democratic country cannot afford the loss that comes as a part and parcel of the world’s most powerful country’s detachment from its market.

 

Vignesh. S. G

Photo Courtesy: Google/ images are subject to copyright 

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US to relook its preferential trade treatment to India