USA president Donald Trump looked set to open a new front in his trade wars on Monday with a plan to end preferential trade treatment for India that allows duty-free entry for $5.6bn worth of the country's exports to the United States.
US President Donald Trump continues to reshape the world's trade: recently he has decided that goods from Turkey and India will no longer be eligible for tariff-free access to the American market.
BackgroundUnder the United States GSP programme, certain products can enter the United States duty-free if beneficiary developing countries meet the eligibility criteria established by Congress. GSP criteria include, among others, respecting arbitral awards in favour of United States citizens or corporations, combating child labour, respecting internationally recognised worker rights, providing adequate and effective intellectual property protection, and providing the United States with equitable and reasonable market access.
According to the official, who refused to be identified, India was planning to offer a considerable trade package to the USA, in terms of greater access for American agricultural imports to India through lowering of tariffs.
Turkey is no longer eligible to participate in the Generalized System of Preferences program because it "is sufficiently economically developed", USTR said in a news release.
Trump fetes North Dakota State with fast food
It was their second championship in a row and seventh in eight years in the division that used to be known as "Division I-AA". ASSOCIATED PRESS Trump was given a jersey by the football team in the state dining room of the White House.
Mukherjee said India has outgrown its GSP status, although she did dispute Trump's assertion that India is not providing the US with reasonable market access.
As a result, he directed the US Trade Representative's (USTR) office to remove India from a programme that grants it preferential trade treatment.
The GSP criteria include, among others, respecting arbitral awards in favour of United States citizens or corporations, combatting child labour, respecting internationally recognised worker rights, providing adequate and effective intellectual property protection and providing the U.S. with equitable and reasonable market access.
Also Monday, Trump said he intends to end Turkey's status as a GSP beneficiary, based on that country's economic growth.
Given the ongoing situation at trade front, "I do not think any knee-jerk reactions would be warranted" from India side, the secretary said. Contributing to the imbalance are India's import licensing requirements (including for motorcycles), export subsidy programs and lack of transparency in its laws regulating trade, says the Commerce Department's International Trade Administration. "For the sake of the many Americans and Indians who relied on GSP benefits, I hope that India will work to quickly address these legitimate concerns".
Ludicrous to say Liverpool bottling Premier League title race, says Chris Sutton
We don't expect any changes at the back as the duo of Virgil van Dijk and Joel Matip are starting to perform well together. It's football - we don't play Playstation", he said. "Now City can say we win every match, we are going to be champions".
Trade ties with the U.S. were hurt after India unveiled new rules on e-commerce limiting the way internet retail giants Amazon and Walmart Inc-backed Flipkart do business. As many as 5,111 Indian products, ranging from textiles to engineering goods, are covered under GSP, of which India was using only 2,167 tariff lines. India declined saying it had commitments to make such medical devices affordable to the Indian patients, but agreed to open up the Indian market for a wide variety of USA farm produce - from cherries to chicken to milk products, which New Delhi had long resisted because of reservations over United States farm practices.
While India announced retaliatory tariffs, they have not been enacted. "In a few instances, specific United States requests were not found reasonable and doable at this time by the departments concerned, in light of public welfare concerns reflective of India's developing country status and its national interest", Wadhawan said.
India had opposed proposals to end the GSP saying that it would be "discriminatory, arbitrary" and hurt the country's development.
It comes as the United States negotiates with China to resolve a damaging trade war.
Will India Still Benefit from U.S.
House Democrats Launch Sweeping Probe Into President Trump
In an email, he explained that such wide-ranging inquiries are actually nothing new for presidential administrations. ABC News has reached out to the White House for comment, but has not yet heard back.