Scrapping India's trade privileges could hit US consumers: Senators
NEW DELHI: A US plan to end preferential duty-free imports of up to $5.6 billion from India could raise costs for American consumers, two US senators have told their country's trade office, urging a delay in adopting the plan, and seeking more negotiations.
If President Donald Trump presses ahead with his plan to end the generalized system of preferences (GSP) for India, it could lose the status in early May, Indian officials have said, raising the prospect of retaliatory tariffs.
India is the world's largest beneficiary of the GSP, dating from the 1970s, but trade ties with the US have widened over what Trump calls its high tariffs and concerns over New Delhi's e-commerce policies.
If the United States scraps duty-free access for about 2,000 product lines, it will mostly hurt small and medium businesses in India, such as makers of engineering goods.
Despite close political ties, trade between India and the United States, which stood at $126 billion in 2017, is widely seen to be performing at nearly a quarter of its potential.
Trade relations suffered in the past few months after India adopted new rules on e-commerce reining in how companies such as Amazon.com Inc and Walmart Inc-backed Flipkart do business.
Last June, India said it would step up import duties varying from 20 per cent to 120 per cent on a slew of US farm, steel and iron products, angered by Washington's refusal to exempt it from new steel and aluminium tariffs.
But it has since repeatedly delayed adopting the higher duties.
Ramesh - Chennai - 20 hours ago -Follow
Such issues are not addressed by retaliation. Trade is successful only when both parties meet their objectives. It is not who gets less or more. There is give and take. World has changed a lot since 1970. Review of the agreement to suit today's scenario is what both parties need to do and convince each other and agree to the terms.
Sudhansu Sekhar Das - 19 hours ago -Follow
Nothing will happen to India but US consumer will pay more.There is no substitute to Indian n product and Masala.
Pradeep - 20 hours ago -Follow
India has largest population and wider market than any country. If India want then it can prosper within itself without depending on any countries. That is what the unique religion of Hindu teaches the people. Indian citizen has to stop relying on any products made outside the country. India has to start production of its own weapons, medicines, electronic, etc. rather than depending on developed country like US, Russia, France, Isarel, etc..
boycott - mad cow temple - 19 hours ago
Boycott Chinese products. Stop sending Indian IT talents to US. Both will come to India begging.
Pramod - Sambalpur - 19 hours ago -Follow
India can withstand the tarrif imposed by USA.If America scraps the privilege s enjoyed by India USA has to suffer a lot.pkp
Dreet - 19 hours ago -Follow
Trump bashing India is like India bashing Pakistan
All for polls
Neera Chhabra - 20 hours ago -Follow
Trump is a fool
Abhishek - 20 hours ago -Follow
Har Har Modi! Foreign Policy at its finest level.
Dreet - 19 hours ago -Follow
Yes, we are really happy to buy cheap Indian rice and tea.
Frequent Flyer - Bhubaneshwar - 19 hours ago -Follow
Trumps statement that India is tariff king is actually true.
Mohit - 15 hours ago -Follow
US multinational companies have a big interest in India...Indian market is open for them...USA should not dictate terms with India.