US President Donald Trump has decided on 04 March 2019 that he will name of India outside the list of countries which are taking advantage of the Generalized System of Preferences (GSP) program. This benefit is raised on products that are exported to the US.
The US has taken this step by accusing India of not having proper business cooperation. This announcement came after the reports came in which according to which President Donald Trump has written a letter to the US Parliament, he has conveyed his move.
Turkey's name is also outside the list:
Apart from India, the name of Turkey has also been excluded from this list. Earlier, last year, Trump had exempted the duty-free concession on 50 products imported from India.
According to US law, these changes will be effective from two months after notification is issued. The countries included in this list are given special exemption. After passing this order, it will be enforced as the President's notification.
According to President Donald Trump:
US President Donald Trump says that he has taken this decision because he has not been given the assurance from India that he will give equal amounts to American products in his market. They say that due to restrictions in India, it is causing business loss. The United States began reviewing the conditions set for GSP in April 2018.
What is the GSP program?
Thousands of products from the countries listed in the GSP list were brought to promote economic development by allowing tax-free exemption in the US. America started the process of raising economic growth in the year 1976. So far, nearly 129 countries have got the benefit under the GSP for about 4,800 goods.
GSP was created to promote economic development by allowing thousands of products coming from different countries to allow duty free access. Let us know that in the year 2017, India had exported tax-free over $ 5.6 billion to the United States under GSP.
What will be the impact on India?
In the US GSP program, beneficiary countries do not have to pay any import duty to the US. Under this program, India gets exemption of exports of 5.6 billion dollars (40 thousand crores). India will not get these benefits after being out of the program.
In the year 2017, the US goods and services trade deficit with India was $ 27.3 billion ($ 2,730 million).
Examlover website provide all Latest Current Affairs & Today Current Affairs 2018 for better preparation of UPSC, SSC, Banking, Railway, Defence and all government exams. Daily Current Affairs 2018 news summary on current events of national and international importance for all government competitive examinations. Current affairs preparation for govt. exams, so you can visit here for Current Affairs GK, Today GK, Daily Quiz, Daily GK and Current Affairs Quiz etc. You can also find here all the study material and learning data for One Day Exams, Online Exams and Offline Exams preparation. All types current affairs category here and uncategorized current affairs updates by us day to day related government schemes, publics deals, politics, Sports Science & Technology and miscellaneous news which is very important and useful in all government exams like UPSC, SSC, Banking, Railway, Medical etc.