Very heart-breaking and sad news has arrived post after oath taking ceremony of Modi Cabinet 2.0. as US President Donald Trump has terminated India’s designation as a beneficiary developing nation for a year under the key GSP (Generalised System of Preferences) trade program after determining that it has not assured the US that it will provide “equitable and reasonable access to its markets.”
The termination will take effect from June 5. The Generalised System of Preferences is the oldest US trade programme, designed to promote duty-free trade of thousands of product among the designated beneficiary countries.
“I have determined that India has not assured the US that it will provide equitable and reasonable access to its markets. Accordingly, it is appropriate to terminate India’s designation as a beneficiary developing country effective June 5, 2019,” Trump said in a proclamation on Friday, ignoring the plea made by several top American lawmakers as it will cost American businesses over USD 300 million in additional tariffs every year.
Earlier on 4th March US had issued a 60-day notice to India, warning India to terminate its designation as beneficiary developing nation list. The notice period got ended on 6th May and now the final action has arrived.