Trump ejects India from $5.6bn tariff deal over 'negative' trade barriers

Trump ejects India from $5.6bn tariff deal over 'negative' trade barriers

"A favourable trade package was being worked out, which would have allowed a greater entry of USA agricultural produce into the Indian markets".

India, meanwhile, is being terminated from the program because it has failed "to provide the United States with assurances that it will provide equitable and reasonable access to its markets in numerous sectors".

He said: "Discussions are on with the United States, and given cordial and strong ties, (we are) keeping retaliatory tariffs out of it".

President Donald Trump sent letters to Congress and the Turkish and Indian governments to notify them of the changes, setting off a 60-day countdown after which they will take effect via presidential proclamation.

"I will continue to assess whether the Government of India is providing equitable and reasonable access to its markets, in accordance with the GSP eligibility criteria", Trump noted in his letter on India's GSP status.

"There will surely not be any significant impact on our exports or any statistical edge to our competitors", Wadhwan said, adding that India charges tariffs well in line with standards set by The World Trade Organization.


Turkey and India reacted with a mix of anger and resignation Tuesday at the United States' decision to end a preferential trade program with the countries that will see some tariffs return on goods.

HT reported on February 12 about the impending action by USTR.

Of India's $80 billion in annual exports to the U.S., only $5.6 billion were covered by the preferences, he said, according to a report by the Press Trust of India news agency.

This was more than 10% of the total Indian goods imported by the U.S. in 2017. Congress establishes the conditions of eligibility for GSP, which include "providing the U.S. with equitable and reasonable market access, protecting workers' rights and combating child labour".

"There were a number of areas we were willing to show flexibility, a number of agricultural products of the United States that we were willing to allow for imports", the external affairs ministry official quoted above said.

India was ready to address United States concerns regarding medical devices in principle, by putting in place a suitable trade margin approach in a reasonable time-frame to balance concerns about fair pricing for the consumers and adequate remuneration for the suppliers.


On the dairy sector, "given our religious and cultural concerns, we have a requirement that there should be a certificate that source of the dairy product should have never been fed animal derived feed".

U.S. -India ties are more of "a collaboration of convenience", said Nick Bisley, an global relations professor at Melbourne's La Trobe University. However, India deferred implementation of the decision as talks were going on between the two sides for a trade package.

India had opposed proposals to end the GSP saying that it would be "discriminatory, arbitrary" and hurt the country's development.

Monday's move comes as trade tensions between the United States and India mount.

Under the GSP programme, which has been in place since 1976, the USA grants some Indian exports preferential or duty-free access into the American markets.


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