Login With Google
Generalized System of Preferences (GSP)
Why is it in the news?
- A group of 25 influential American lawmakers urged the U.S. Trade Representative not to terminate the GSP programme with India.
- They warn that companies seeking to expand their exports to India could be hit.
More in the news
- On March 4, President Donald Trump announced that the U.S. intended to terminate India’s designations as a beneficiary developing country under the GSP programme.
- The 60-day notice period ends on May 3.
- On the eve of the end of the notice period, the 25 U.S. lawmakers made a last-ditch effort to convince the Trump administration from going ahead with its decision.
- Expressing concern over such a move, the lawmakers said that no party in the United States or India would benefit from terminating GSP benefits.
- The programme is expected to impact India’s exports to the US worth $5.6 billion under this scheme.
- About GSP System:(1) The Generalized System of Preferences (GSP) is a U.S. trade program designed to promote economic growth in the developing world.(2) The GSP program provides additional benefits for products from least developed countries.(3) It provides preferential duty-free entry for up to 4,800 products from 129 designated beneficiary countries and territories.
(4) GSP measure was adopted at UNCTAD Conference in 1968 and later enacted by General Agreement on Trade and Tariff (GATT) in 1971.(5) US instituted GSP on January 1, 1976, by the Trade Act of 1974.(6) A wide range of industrial and agricultural products originating from certain developing countries are given preferential access to US markets.
Source
The Hindu.