US plans to restore GSP concessions to India


The US-India Trade Policy Forum (TPF) resumed dialogue on Tuesday after four years in which the United States said it would consider India’s request to reinstate the Generalized System of Preferences (GSP) it The Trump administration pulled out in 2019, affecting Indian exports worth more than $ 6.3 billion, officials said.

At the 12th TPF Ministerial Meeting, co-chaired by Trade Minister Piyush Goyal and US Trade Representative Katherine Tai in New Delhi, the two countries agreed to resolve their differences on key issues such as market access for agricultural and non-agricultural products, the protection of intellectual property rights and the encouragement of digital trade.

“Ministers reviewed their particular interests in making progress in the area of ​​market access. In this regard, India underlined its interest in restoring its beneficiary status under the United States Generalized System of Preferences program; the United States noted that this could be considered, as justified, in relation to the eligibility criteria determined by the United States Congress, ”the two ministers said in a joint statement.

The benefits of the GSP are tariff concessions granted by rich countries on exports from developing and least developed countries. The United States ended GSP preferential tariff benefits from June 2019, according to the Commerce Department. India exported $ 6.3 billion worth of goods to the United States under the GSP program in 2018, which represented 12.1% of its total exports to the country that year. .

At the TPF meeting on Tuesday, the United States and India also exchanged views on potential targeted tariff cuts and discussed facilitating trade in individual products such as market access for mangoes. and pomegranates and cherries and alfalfa hay for animal feed from the United States.

“In addition, the United States has agreed to work to meet India’s request for access to table grapes in the United States, and India has agreed to work to finalize the mutually agreed export certificate. to allow the importation of American pork and pork products, “the statement said.

The two countries also agreed to explore the possibility of better market access for products, including dried distillers’ grains from the United States and market access for water buffalo meat and shrimp. wild caught in India.

The two ministers agreed to hold regular TPF meetings to address “outstanding bilateral trade issues and allow the two countries to explore important emerging trade policy issues” as they decided to reactivate the groups. TPF work on agriculture, non-agricultural goods, services. , investment and intellectual property. TPF will aim to achieve an ambitious and shared vision for the future trade relationship between the two countries, as announced by President Joe Biden and Prime Minister Narendra Modi at their September 24 meeting, they said.

According to the joint statement, Goyal and Tai expressed satisfaction with the robust rebound in bilateral merchandise trade in 2021 (January – September 2021) which showed growth of nearly 50% compared to the same period of the previous year. and this year’s two-way merchandise trade is on the verge of exceeding $ 100 billion.

Trade between the two countries is developing rapidly after Covid. India’s merchandise exports to the United States between January and September 2021 grew annualized 64.64% to $ 36.08 billion, and imports 71.99% to $ 20.26 billion. dollars.


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