The preferential trade status of India and Turkey, has been scrapped by Washington, this was made known by the US trade chief’s office said, as President Donald Trump ramps up his battle against what his administration views as unfair foreign trade practices.
The Generalized System of Preferences (GSP) program had granted favourable treatment of imports from both countries for a range of manufactured goods, such as automotive parts, tires and appliance parts.
According to the Office of US Trade Representative, Robert Lighthizer, the Trump’s administration will end “India’s and Turkey’s designations as beneficiary developing countries” because both countries no longer qualified.
India, the biggest beneficiary of the GSP program, had failed to assure Washington that it would allow required market access and instead erected “trade barriers that create serious negative effects on United States commerce,” the statement added.
New Delhi played down the effect of the decision, with Commerce Secretary Anup Wadhawan saying the withdrawal of the program would not have a “significant impact” on Indian trade.