US to withdraw zero tariff on $5.6 billion of Indian exports


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US to withdraw zero tariff on $5.6 billion of Indian exports

Following multiple failed attempts of White House to resolve their trade differences with Indian government, India may have been facing a US sanction, which would lead the nation to lose tariff exempt over $5.6 billion of exports.

In the wake of a widening dispute over the two nations’ trade, alongside, investment policies including the 2017’s price deducing on US-made medical equipment and a recent reform of e-commerce policy, that led US Walmart owned Amazon India’s millions of products to ash, India could lose a vitative trade concession, under which it had been enjoying zero tariffs on as many as $5.6 billion of Indian exports, as mentioned earlier, people with close tie-up with the subject matter unveiled on Friday, the 8th of February.

One of the world’s largest beneficiary scheme, the Generalized System of Preferences, forced into action since 1970s, could exempt India from its tariff policy, and should it happen, it would be the most penal action against the country since Donald Trump took office in 2017.

Despite Trump’s repeated calls of a declined tariff over US-made productions and US companies doing business in India, such as US Walmart Inc., Indian government repeatedly ignored the calls, since the Indian Prime Minister, Narendra Modi had overhauled the foreign investment policies in order to turn India in to a manufacturing hub, creating more job opportunities for the domestic professionals.

Since the US trade representative had been reviewing India’s status as a GSP beneficiary nation, an announcement is expected over the next couple of weeks, one of the sources mentioned on Friday, February the 8th.