The US also announced in April last year to review the eligibility criteria of India currently accessing Generalised System of Preferences (GSP) benefits of zero duty on $6.3 billion worth of India exports. India did not impose the retaliatory tariffs immediately, unlike other major trading partners of the US as the two countries began discussions for finalizing a trade package that would include a withdrawal of the GSP review. However, the talks collapsed as India refused to seed to disproportional demands by the US and the US announced its decision on 4 March to withdraw GSP benefits for India by 1 May. “Our decision is a signal that if the US notifies withdrawal of GSP benefits for India, India could impose the long pending retaliatory tariffs," a commerce ministry official said speaking under condition of anonymity. Trump has often pointed to the bilateral trade surplus India enjoys, claiming that it prohibits US exports through higher tariffs.

Source: Mint May 02, 2019 03:22 UTC