USA plans to scrap the generalised system of preferences (GSP) benefits for India within the next two months. GSP allows India to export up to $5.6 billion worth of products to America duty-free. It will not have significant impact on its shipment to the US.
Farm, marine and handicraft products are among India's exports most likely to be hit, Indian tariffs are within the bound rates under the World Trade Organisation's commitments and are on an average well below these bound rates.
The US had initiated the review of the GSP status to India on the basis of representations by the US medical devices and dairy industries but it subsequently included numerous other issues on a self-initiated basis.
These included issues related to market access for various agriculture and animal husbandry products, easing of procedures related to issues like telecom testing, conformity assessment and tariff reduction on ICT products.
India's top GSP exports to the US in 2017 included motor vehicle parts, ferro alloys, precious metal jewelry, building stone, insulated cables and wires.
