India Downplays Impact Of U.S. GSP Withdrawal

Centre keen to continue talks as it still has 60 days before the rule takes effect.

- Suhasini Haidar

The Indian government on Tuesday downplayed the effect of the U.S. decision to withdraw trade concessions granted to India under the Generalised System of Preferences (GSP), with Commerce Secretary Anup Wadhawan saying that the impact would amount to only $190 million on the value of $5.6 billion in exports to the U.S. that fall under the GSP category.

Sources in the Ministry of External Affairs, however, said that the government would continue to talk to the U.S. during the 60-day period after which the GSP withdrawal would come into effect, in an effort to work out a deal.

The U.S. Trade Representative office on Tuesday morning (Indian Standard Time) said that it had decided to withdraw the GSP status for India and Turkey at the direction of U.S. President Donald Trump following India’s “failure to provide the United States with assurances that it will provide equitable and reasonable access to its markets in numerous sectors.”