Why is it in news?
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U.S. President Donald Trump has announced that he intends to end preferential trade terms for India under the U.S.’s Generalized System of Preferences (GSP) programme.
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His intent was conveyed in a letter sent to the Speaker of the U.S. House of Representatives and President of the Senate.
More in news
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GSP programme: It sets zero tariffs for certain goods from a set of 121 developing countries to foster their trade and economic development.
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India- largest GSP beneficiary: With $5.6 billion of India’s exports to the U.S., India is the largest GSP beneficiary.
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Sectors benefitted from GSP: Chemicals, gems and jewellery, engineering and textiles are among the Indian industrial sectors that benefit from GSP.
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Imports under GSP in US: A total of about $21 billion in imports entered the U.S. duty-free under GSP in 2017, of a total of $2.3 trillion in imports.
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Trade barriers by India: India has implemented a wide array of trade barriers that create serious negative effects on United States commerce.
Source
The Hindu