44 influential lawmakers request Trump Administration to reinstate India in the GSP Programme
A total of 44 influential lawmakers of a bipartisan group have urged the United States (U.S.) President – Donald Trump’s Administration to reinstate the preferential trade treatment given to India under the Generalized System of Preferences (GSP) trade programme.
The preferential trade treatment given to India was called off in June 2018 by Donald Trump as he believed that the move will help in reducing U.S. trade deficits.
Under the GSP Programme, certain products are allowed to enter the U.S. market without any duty, provided the beneficiary developing country meets a set of criteria established by Congress. The criteria include providing intellectual property protection and giving a reasonable and fair market access to the U.S.
Headed by Congressmen – Jim Himes and Ron Estes, the letter has been signed by 26 Democrats and 18 Republicans and has been addressed to the U.S. Trade Representative – Robert Lighthizer. In the letter, the House Members suggested an “early harvest” approach that “would ensure that long-sought market access gains for US industries are not held up by negotiations over remaining issues”.
The letter further read, “Should there be progress in negotiations, we hope you will use the tools provided by the GSP statute as warranted, such as partial reinstatement.”
It is to be noted that Prime Minister of India – Narendra Modi and Donald Trump are slated to meet on Sunday, September 22, 2019 in Houston where India and U.S. are expected to announce a potential trade deal on several pending trade issues, including GSP.
Although GSP is seen as a benefit to developing nations but, as a matter of fact, it is American businesses and workers that have suffered most from its termination. As per the data available with the Coalition for GSP, the loss of GSP for India has costed American companies about U.S. $ 30 million in July 2019.
Speaking on the occasion, Executive Director of the Coalition for GSP – Dan Anthony said, “Companies are telling Congress about the American costs – both in dollars and jobs – of lost GSP eligibility for India.”
For the records, India was the largest beneficiary of the GSP Programme in 2017 with goods worth U.S. $ 5.7 billion entering the U.S. market. The termination of India from the GSP Programme has impacted more than 2,000 Indian products, including auto components, industrial valves and textile materials.
