US Abolished India’s Designation As A Beneficiary Developing Nation With Effect From June 5
Mumbai: The United States has abolished the status of a developing country of the beneficiary of India. In the White House announcement, US President Donald Trump said, “India’s position as a beneficial developing country is terminated effective from June 5, 2019.”
On 4 March, Trump had announced that the United States intends to eliminate India’s designation as a beneficiary under the Generalization System (GSP) program. Trump had said that this decision does not follow the legal eligibility norms for India.
In a letter to the President of the House of Representatives and the President of the Senate, the American President wrote: “According to Section 502 (F) (2) of the Business Act of 1974, the amended (Trade Act) (19) USC 2462 (F) (2) )), I am providing information on the intention of ending India’s designation as a beneficial developing country under the Generalization System (GSP) program. “
“I am taking this step because, after deep engagement between the United States and India, I have determined that India has not given the United States the assurance that it will provide equal and fair access to the Indian markets. As stated in Section 502 (c) (4) Trade Act (19 USC 2462 (c) (4)), “Trump said.
Under the GSP program, about 2,000 products, including auto components and textile materials, can enter US duty-free if beneficiary countries meet eligibility criteria established by Congress.
According to a Congressional Research Service report released in January, India was the biggest beneficiary of the program in 2017, in which USD 5.7 billion was imported in the US to give duty-free status. Turkey is another country which has been removed from countries with the GSP policy list.
