Sandeep Dikshit
TRIBUNE NEWS SERVICE
NEW DELHI, JUNE 1
India has vowed to protect its national interests after US President Donald Trump announced the withdrawal of zero duty access for Indian exports under the Generalised System of Preferences (GSP) scheme worth about Rs 39,000 crore ($ 5.6 billion) from June 5.
“India, like the US and other nations, shall always uphold its national interest in these matters,” said a Commerce Ministry statement.
The Ministry said it was “unfortunate” that the US did not accept the Indian offer during discussions between US Commerce Secretary Wilbur Ross and then Commerce Minister Suresh Prabhu. At the same time, it said it would continue to work with the US to iron out the differences. “We are confident that the two nations will continue to work together intensively for further growing these ties in a mutually beneficial manner,” added the statement.
Commerce Secretary Anup Wadhawan had put up a brave face when the US had first announced its findings in March with a two-month window till May 3 to resolve the dispute. It then gave a one-month rollover to India as it was in the middle of elections, but gave little time for the new government to settle in.
In a bid to appear conciliatory, India has repeatedly postponed retaliatory tariffs on 29 US products after Washington hiked duties on Indian exports of steel and aluminium in March last year. This frequently rolled-over deadline expires on June 19.
Wadhawan had said in March that the effect would be “very moderate” and estimated the impact at only $190 million (about Rs 1,200 crore). But the Commerce Ministry has taken a graver view of the situation after the latest US announcement.
“We have significant development imperatives and concerns and our people also aspire for better standards of living. This will remain the guiding factor in the government’s approach,” it said in a statement.
Turkey is the other country in the US firing line on withdrawal of GSP. While Turkey has retaliated by urging Russia to speed up the delivery of S-400 missile defence systems which the US opposes, India hoped to “continue to build on our strong ties with the US”.
Several members of the US Congress and US manufacturers had urged Trump not to withdraw GSP benefits to India as India is a strategic ally and the input costs for American producers will increase. The US is India’s second-largest trade partner, after China, with total trade at $74.3 billion. India enjoys a trade surplus of 22.9 billion, which is the main reason for the American ire.
Trump deals a blow to India
India has not assured the US that it will provide equitable and reasonable access to its markets. Accordingly, it is appropriate to terminate India’s designation as a beneficiary developing country from June 5. Donald Trump, US Prez
HOW IT WILL AFFECT
- Farm, marine and handicraft products will be worst hit. Pharma and textiles may also be hit
- India’s other major exports to the US are motor vehicle parts, ferro alloys, precious metal jewellery, building stone, insulated cables and wires
REASONS FOR DISCORD
- New rules on e-commerce to protect Indian retail trade that has hit Amazon and Walmart (Flipkart)
- RBI making it compulsory for Mastercard Inc and Visa Inc to set up local servers for Indian data
- Higher tariffs on electronic products and smartphones
- India’s decision to cap the prices of medical devices
- India’s mandatory certification for dairy products
from The Tribune http://bit.ly/2Z0t8Kq
via Today’s News Headlines
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