Trade error

US goes too far, but India's response could have been better

The United States administration has decided to exclude imports from India and Turkey from its Generalised System of Preferences (GSP) scheme. The scheme allows for certain sets of goods to be imported into the US with zero tariffs. India is currently the largest beneficiary of this scheme, with about $5.6 billion worth of imports benefiting. This is a disturbing development for Indian exporters who are already stressed, and shows the US in poor light. It’s true India’s tariffs are generally high, and its general stance on trade is protective, but the US government’s moves have also been inconsistent. For example,