Amid the Covid-19 crisis, India and the US are discussing a limited trade deal. The two sides are reportedly considering bringing the Generalised System of Preferences (GSP) benefits under this package.
The Donald Trump administration is likely to reinstate trade benefits for certain Indian imports under its Generalised System of Preferences (GSP) as a gesture of gratitude for the Narendra Modi government’s decision to send hydroxychloroquine (HCQ) and paracetamol to the US amid the Covid-19 pandemic, ThePrint has learnt.
Until it was removed from the GSP list, India used to get benefits worth around $6 billion — out of the $46 billion worth of goods it exports to the US — by means of zero or reduced tariffs on 2,167 products. The preferential treatment was given mostly to labour-intensive sectors like leather, jewellery and engineering.
“India, especially the Ministry of Commerce and Industry has already done its calculation and said the impact has not been much due to removal of the benefits. But restoring it definitely adds to symbolism. This strengthens the fact that the US-India relationship is stronger than before,” said the source, who did not wish to be named.
Courtesy The Print – theprint.in/diplomacy