Table of Contents
Is India a GSP country?
In early March 2019, President Trump announced the United States’ intent to terminate India’s (along with Turkey’s) designation as a beneficiary developing country under the Generalized System of Preferences (GSP) program.
What is GSP benefit?
GSP promotes economic growth and development in the developing world. GSP promotes sustainable development in beneficiary countries by helping these countries to increase and diversify their trade with the United States. The GSP program provides additional benefits for products from least developed countries.
What is GSP India?
GSP benefits are tariff concessions provided by wealthy nations on exports from developing and least developed countries. The US terminated preferential tariff benefits under GSP from June 2019, according to the commerce ministry.
What are the GSP countries?
The following 15 countries grant GSP preferences: Armenia, Australia, Belarus, Canada, the European Union, Iceland, Japan, Kazakhstan, New Zealand, Norway, the Russian Federation, Switzerland, Turkey, United Kingdom and the United States of America.
Is India a GSP+?
In 2019, former president Donald Trump terminated India’s designation as a beneficiary developing nation under the Generalised System of Preference (GSP) trade programme after determining that New Delhi has not assured the US that it will provide “equitable and reasonable access” to its markets.
What is GSP tariff?
The Generalized System of Preferences (GSP) provides nonreciprocal, duty-free tariff treatment to certain products imported into the United States from designated beneficiary developing countries (BDCs).
What is a GSP country?
Has GSP been renewed for 2021?
Not successful in renewing the GSP program in 2020, as expected there is a push to renew GSP in Congress in 2021. The Senate passed a renewal provision within their China competitiveness package in early June of 2021.
What does India’s termination from GSP mean for the US?
India’s termination from GSP follows its failure to provide the United States with assurances that it will provide equitable and reasonable access to its markets in numerous sectors.
Is India a GSP beneficiary developing country?
India has implemented a wide array of trade barriers that create serious negative effects on United States commerce. Despite intensive engagement, India has failed to take the necessary steps to meet the GSP criterion. The United States designated Turkey as a GSP beneficiary developing country in 1975.
How much did the US GSP programme cost India?
In total, 1,945 Indian products were covered under the GSP programme. The tariff concessions for these products were well above US$241 million—which translates to the total cost India bore due to the withdrawal of GSP status. Figure 2. Top 5 Beneficiaries of the US GSP Programme (2018, US$ million)
How has GSP withdrawal affected exports to the US?
A decline in exports to the US was anticipated as items under zero-tariff rate were subjected to a higher rate after withdrawal of GSP. This brief conducts a sectoral analysis of the top nine Indian exports to the US and shows that six out of them were unaffected by the GSP withdrawal. Indeed, exports in the Electrical machinery sector grew.