Snapshots

U.S., India: After Almost 50 Years, Washington Nixes New Delhi's Trade Benefits

Jun 3, 2019 | 20:18 GMT

The White House announced May 31 that it had revoked India's tariff benefits under the Generalized System of Preferences (GSP). Washington cited New Delhi's failure to provide "equitable and reasonable access" to its trade markets, while implying that the program -- which was put in place in 1975 to boost U.S. trade with developing countries -- was outdated and no longer useful. India had been the largest beneficiary of the GSP, with $6.3 billion of its goods eligible for preferential duties under the program in 2018. New Delhi has since downplayed the U.S. decision, saying that such economic concerns were simply a part of any international relationship that "get resolved mutually from time to time." Should the White House follow up with a 301 investigation (which is the legal tool it has used to hike tariffs against Chinese exports), there's a chance Washington could start imposing tariffs against a wider...

Article Search

Copyright © Stratfor Enterprises, LLC. All rights reserved.

Stratfor Worldview

OUR COMMITMENT

To empower members to confidently understand and navigate a continuously changing and complex global environment.