America and India are getting closer
to each other to stop China's expansion in world trade. Given the growing
proximity between the two countries, it is expected that the US may again
restore the Generalized System of Preference (GSP) to India. In return, India
can reduce or eliminate import duties on 28 types of goods coming from America.
The US and India may soon enter into
a mini trade deal to implement this type of arrangement. The US can currently
ignore the issue of digital tax being levied by India to execute a mini trade
deal without any hindrance. Both countries believe that the Free Trade
Agreement (FTA) is a long process, so the mini trade deal is more effective
now.
According to the Ministry of Commerce
and Industry sources, India has benefited greatly from the revival of GSP. In
June 2019, the US excluded India from the GSP list. At that time, India was
exporting around 2000 such products to the US, which was not charged in the
US. Due to this, the price of these products was low in the US and their demand
remained in the US market.
These include items ranging from
auto components to textiles. India exported goods worth $ 5.7 billion to the US
under the GSP. India retaliated after the US excluded India from GSP and
increased the tariff of 28 products coming from the US.
Posts
.webp)
No comments: