The Biden administration of the US has indicated that settling the GSP issue with India is at the top of their agenda. Several MPs had raised the issue of retaliation in this case from India before the Biden administration. In 2019, the predecessor of the US Donald Trump government had abolished India’s eligibility as a beneficiary under the US Generalized Preferential System (GSP). The US had then said that India had not given an assurance that it would provide equal and rational access to American products in its markets.
America’s Oldest Business Preference Program
GSP is America’s oldest trade preferential program. Under this, products from selected countries are given free entry into the US market. The beneficiaries of this program of the US included India, which was abolished by the previous Trump administration. Several members of the US Senate Finance Committee took up the matter. The issue arose on the sidelines of a meeting held to confirm the designation of Catherine C Tye, the nominee of the trade representative of the Biden administration of the United States.
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Ty said on this occasion, on your question of GSP in India, I would like to say that if all goes well, then this issue is very high on my agenda. He gave this answer to the question of Senator Maria Cantwell. Cantwell said that after the US side removed India from the list of GSP beneficiaries, it retaliated by increasing tariffs on several US products. India continues to benefit under the GSP program. In the year 2017, India exported $ 5.7 billion to the US under this program.