In a further toughening of stance on trade issues, the United States went ahead and revoked duty-free
concessions on import of at least 50 Indian products.
The list primarily includes products from handloom and agriculture sectors.
It is not clear how India will react to this US step.
It is said that the federal register issued a notification and listed out 90 products which were so far subject to duty-free provisions under the Generalized System of Preferences (GSP).
President Donald Trump issued a presidential proclamation.
This led to removal of these products from the privilege beginning November 1.
Notably India is the largest beneficiary of the GSP.
In 2017, India’s duty-free export to the US under the GSP was to the tune of more than USD 5.6 billion.
Trump said he had determined in 2017 certain beneficiary developing countries exported eligible articles in quantities exceeding the applicable competitive-need limitations.
Products from other countries like Argentina, Brazil, Thailand, Suriname, Pakistan, Turkey, the Philippines, Ecuador and Indonesia have also been removed from the GSP list.
In June, India urged the Trump administration not to withdraw it from the GSP.>