Slumping India’s trade privilege could hit US consumers, says senator

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Slumping India’s trade privilege could hit US consumers, says senator

Trump Administration’s retaliatory plan to conclude the preferential duty-free imports of up to 5.6 billion worth of Indian goods, a privilege widely known as GSP (Generalized System of Preferences), could raise costs of Indian goods for American customers, two US Senator had stated in US trade office, urging for further consideration before adopting such policies and a delay to seek more negotiations.

Since trade relationships between India and United States had been forging ahead to another front of tit-for-tat tariff abrasions amid a wide-scale differences between the policies of US President Donald Trump and the Indian government of PM Narendra Modi, the prospects of retaliatory tariffs had been emerging.

If US president Donald Trump remained as meretricious as usual and pushed ahead with his plan of ending the GSP facilities for India, it would lose the GSP preferential status as early as in May, Indian officials said, which would eventually weigh on the US consumers of Indian goods, given the growing numbers of NRIs (Non-Residential Indians) and US citizens of Indian origin in United States.

Citing that measures likes of ending GSP facilities for Indian goods could make the Indian export costlier for US consumers, Senator Mark Warner and John Cornyn wrote, “While we agree that there are a number of market access issues that can and should be addressed, we do remain concerned that the withdrawal of duty concessions will make Indian exports of eligible products to the United States costlier. Some of these costs will likely be passed on to American consumers”.