GSP is America’s oldest preferential trade scheme, which offered Indian exporters tariff-free access to the US until June, when all benefits were suspended
The United States Trade Representative’s (USTR’s) office has classified India as a developed economy, ineligible for benefits given by Washington DC to developing countries. This is expected to stop all chances of India reclaiming its benefits under the US’ Generalized System of Preferences (GSP) scheme.
The GSP is America’s oldest preferential trade scheme, which offered Indian exporters tariff-free access to the US until June, when all benefits were suspended. The USTR considers a country’s per capita gross national income (GNI) and share of world trade to designate its level of economic development.
On the criteria of a developing country having less than 0.5 per cent share of global trade, India crossed the limit way back, according to the government’s estimate. As of 2017, India’s share in global trade was 2.1 per cent for exports and 2.6 per cent for imports. The USTR has also argued that since India, along with nations like Argentina, Brazil, Indonesia, and South Africa, is part of the G20 bloc, they can be classified as being developed despite having a per capita GNI below $12,375, according to the World Bank data…Keep Reading
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