New Delhi: India said Tuesday the US government’s move to withdraw duty concessions on certain products under the Generalised System of Preferences (GSP) programme will not have a significant impact on exports to America as the benefits were only about USD 190 million annually.
Commerce Secretary Anup Wadhawan said despite the fact that India was working on an ‘extensive and reasonable’ trade package, the US has decided to go ahead with its decision to scrap the preferential trade benefit after 60 days.
The package was covering all concerns related to bilateral trade with the US on sectors including medical devices, dairy products and agricultural goods, Wadhawan pointed out adding that India could not negotiate issues concerning interests of public healthcare.
India exported goods worth USD 5.6 billion under GSP last year, but ‘our total GSP benefits were to the tune of only USD 190 million’, the secretary told reporters here. He said ‘the benefits in absolute sense and a percentage of trade involved are very minimal and moderate’.
The response came after the US government said it intends to end the preferential trade status granted to India.
Elaborating the demands of the US on medical devices and dairy products, Wadhawan said India is willing to find a reasonable solution but that has to balance with the country’s non-negotiable public health concerns and requirements.
“Both these issues (medical devices and dairy) have aspects that are non-negotiable. Like in medical devices, we will not compromise on the affordability and needs of public health,” Wadhawan asserted.
US President Donald Trump has said he intends to end the preferential trade status granted to India and Turkey, asserting that New Delhi has failed to assure America of ‘equitable and reasonable’ access to its markets, an announcement that could be seen as a major setback to bilateral trade ties.
PTI
