US President Donald Trump has announced his intention to end preferential trade treatment for India, accusing New Delhi of failing to convince Washington it will provide “equitable and reasonable” access to its markets.
“I am providing notice of my intent to terminate the designation of India as a beneficiary developing country under the Generalized System of Preferences (GSP) program,” Trump said in a letter to Congress on Monday.
I am taking this step because, after intensive engagement between the United States and the Government of India, I have determined that India has not assured the United States that it will provide equitable and reasonable access to the markets of India.
The move to end India’s participation in the Generalized System of Preferences (GSP) program is not surprising. For months, Trump has accused New Delhi of taking advantage of the arrangement, under which it enjoys zero tariffs on $5.6 billion of exports to the United States.
“India is a very high tariff nation,” Trump reiterated in a speech at the Conservative Political Action Conference (CPAC) on Saturday. “When we send a motorcycle to India, they charge 100 per cent tariff. When India sends a motorcycle to us, we charge nothing.”