US President Donald Trump issued a proclamation, ordering to end the preferential trading regime with India under the Generalized System of Preferences (GSP) as of Wednesday.
“Now, therefore, I, Donald J. Trump, President of the United States of America, acting under the authority vested in me by the Constitution and the laws of the United States of America, including title V and sections 203 and 604 of the 1974 Act, do hereby proclaim that: (1) The designation of India as a beneficiary developing country is terminated, effective June 5, 2019,” Trump said in the proclamation, issued by the White House late on Friday.
“In Executive Order 11888 of November 24, 1975, the President designated India as a beneficiary developing country for purposes of the Generalized System of Preferences… I have determined that India has not assured the United States that India will provide equitable and reasonable access to its markets. Accordingly, it is appropriate to terminate India’s designation as a beneficiary developing country effective June 5, 2019,” the proclamation added.
Trump also ordered to remove India from the list of developing WTO member states exempt from the application of the safeguard measures on CSPV products and large residential washers.
The Indian Government responded, stating that despite Washington’s move the country would ” continue to build on our strong ties with the US, both economic and people-to-people.”
The GSP allows specific products from over 120 developing countries and territories to enter the United States duty-free.
Source: News Agencies