On Friday the United States terminated India’s eligibility for a duty-free import scheme for developing countries. It has stated that the country has not given assurances it “will provide equitable and reasonable access to its markets” to US companies as required under relevant American trade laws.
The US has said that it is time for the two countries to move on, and try to resolve other trade irritants. The US official has left open the possibility of restoring these benefits on the condition that India complied with American demands for greater market access to it dairy products and medical devices sectors.
Donald Trump said, “I have determined that India has not assured the United States that India will provide equitable and reasonable access to its markets. Accordingly, it is appropriate to terminate India’s designation as a beneficiary developing country effective June 5, 2019.”
President Trump had conveyed his intention to terminate India’s eligibility for the Generalized System of Preferences (GSP) programme to the US congress on March 4. The formal termination became due on May 4, after the mandatory 60-day notice period.