President Trump threatened to withdraw Generalised System of Preferences (GSP) benefits from India. The first talks between India and USA was reviewed on how to handle trade issues. As a result, the economic growth in India is considered as “very moderate”. As per the latest rules, the USA would stop the GSP benefits in sixty days.
Anup Wadhawan, the Commerce Secretary, has stated that there is a strong relationship with the USA. Also, there would be further discussions between India and the US. Anup Wadhawan has mentioned that GSP benefits are predictable, non-mutual and non-biased. These GSP benefits should be offered by developed countries for the benefit of developing countries.
According to an official statement, Indian GSP concession was extended by the USA. As mentioned earlier, the reduced amount was USD 190 million per annum. Initially, the USA started reviews based on the US medical devices and dairy industries.
Following, there have been other issues discussed as follows. These include marketing agricultural and animal farming products. Relaxation of procedures connected with telecom and testing, lowering of tariff on ICT products. Telecom testing in India would be considered as mutual recognition agreement.
The US Department of Commerce has engaged itself with different government concerns and its problems. So far, India managed to provide meaning methods that satisfied the US requests. Yet, some American requests were unreasonable, unmanageable and not beneficial to Indian public welfare.
India and the USA spoke on various concerns including medical devices, adding suitable trade rules. Concerning dairy market, India had to ensure source animals were not fed with animal blood meal. This rule was placed because of the difference in culture and religion of the two countries. As for the US market, animals had to be fed alfalfa hay and cherries. Also, pork was sent to the USA.
The reduction of duties related to information technologies, India provides moderate without stopping import. Since all countries virtually joined one preferred trade agreement, MFN rate was lowered but, not zeroed.