US terminated India’s preferential trade status under GSP programme

Generalized System of Preference (GSP) is the largest and oldest US trade preference programme.
India was the largest beneficiary of the GSP programme in 2017 with $5.7 billion in imports to the US given duty-free status.
Reason for US withdrawing India’s GSP benefits:
The move was taken on determining that India has not committed to provide “equitable and reasonable access to its markets” for the US.

• US’s trade imbalance with India,
• No access to Indian market for US dairy,
• Medical device industry and
• Issues related to data localisation norms.

On March 4, Trump announced that the US intends to terminate India’s designations as a beneficiary developing country under the GSP programme. The 60-day notice period ended on May 3.