GSP Current Affairs - 2020
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Recently, the United States of America removed the “developing” tag for dozens of countries. India is one amongst them. These countries are to be classified as developed economies
The “Developing” status for a country in the US is associated with US Trade Act, 1974. The act authorized General System of Preferences (GSP). The intention of the system is to help the poor countries develop faster. The act was later adopted by the World Trade Organization (WTO) and was extended to other rich countries as well. In WTO, around two-thirds of the countries classify themselves as developing.
Recently US had withdrawn India from its GSP listings. Under this preference there were more than 2,000 items that were of worth 6.3 billion USD. This affects India harshly. Hence, India has been asking the US to re-include the GSP status. Unfortunately, US has permanently put an end to India’s GSP status by removing it from the list of developing.
Tags: developing countries • Economic Growth • Foreign Trade • GSP • GSP Benefits
Ahead of President Trump’s visit by the end of February 2020, GoI has announced that it is to partially open the poultry and Diary market to imports from US.
India will now allow imports of US turkey, chicken legs blueberries and cherries. The tarrif on Chicken legs are to be cut from 100% to 25%. The Indian Diary Market is to be opened with 5% tariff on some products. However, the diary imports will need certificates that they are not derived from animals that have consumed feeds that include blood meal, internal organs or tissues of animals.
India being the largest producer of milk in the world had restricted diary imports. This was done to protect the livelihood of 80 million rural households.
In 2019, US had suspended Generalized System of Preferences after India capped the prices of medical devices such as cardiac stents, knee implants, etc. India now aims to restore the bonds with US.
Indi is the second largest trade partner of the United States after China. However, US faces trade deficit of 23.2 million USD with India. United States is working in every possible way to reduce the trade deficit.
Recently, US announced that India is a developed country that it does not require GSP for its goods to be exported to US.
Tags: China-US • Diary Industry • GSP • GSP market access • India-US