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US announces GSP eligibility review of India

Press Trust of India  |  Washington 

Based on the market access concerns it has with India, the US today announced eligibility review of for the (GSP).

Simultaneously, the US also announced eligibility review of other two countries -- and Kazakhstan, which it said was based on concerns about the countries' compliance with the programme.

The is the largest and oldest US trade preference programme and is designed to promote economic development by allowing duty-free entry for thousands of products from designated beneficiary countries. last month had voted to renew the through 2020.

For India, the country eligibility review is based on concerns related to its compliance with the GSP market access criterion, said the US (USTR).

For Indonesia, the review is based on concerns related to its compliance with the GSP market access criterion and the GSP services and investment criterion. Kazakhstan's eligibility review is based on concerns related to its compliance with the GSP worker rights criterion.

The USTR said the reviews are based on Trump administration's new GSP country eligibility assessment process as well as GSP country eligibility petitions.

"GSP provides an to help enforce the Trump administration's key principles of free and fair trade across the globe. The is committed to ensure that those countries who receive GSP benefits uphold their end of the bargain by continuing to meet the eligibility criteria outlined by Congress," said Deputy US

"We hope that India, Indonesia, and will work with us to address the concerns that led to these new reviews, he said.

The USTR said it is launching a self-initiated GSP eligibility review of based on concerns related to its compliance with the GSP market access criterion and is also accepting two petitions related to the same criterion.

The petitions filed by the US dairy industry and the device industry requested a review of India's GSP benefits, given Indian trade barriers affecting the US exports in those sectors.

has implemented a wide array of trade barriers that create serious negative effects on US commerce, the USTR alleged.

The acceptance of these petitions and the GSP self-initiated review will result in one overall review of India's compliance with the GSP market access criterion. Introduced in 1976, a wide range of originating from certain developing countries are given preferential access to American markets.

In India's case, it enables duty-free entry of 3,500 product lines, which benefits exporters of textiles, engineering, gems and and

According to the USTR, the total US imports under GSP in 2017 was USD 21.2 billion, of which India was the biggest beneficiary with USD 5.6 billion, followed by (USD4.2 billion) and (USD 2.5 billion).

The programme has now been renewed through December 31, 2020. While legislation to renew the GSP was enacted on March 23rd, the effective date of renewal is April 22, 2018. GSP-eligible entries will enter the US duty-free on, and after, April 22, 2018.

The USTR said the next GSP assessment process will start in the fall of 2018 and will cover beneficiary countries in Eastern Europe, the and and the Western Hemisphere.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, April 13 2018. 04:41 IST
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