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By
Fibre2Fashion
Published
Jun 6, 2018
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India to ask US for renewal of GSP scheme

By
Fibre2Fashion
Published
Jun 6, 2018

India will ask the United States for a fast renewal of the generalised system of preferences (GSP) scheme, which allows market access at zero or low duties for about 3,500 Indian products, including textiles and chemicals. The US Trade Representative’s (USTR) office did not renew the scheme for India in April, saying it wanted to hold an eligibility review.


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India’s commerce and industry minister Suresh Prabhu will visit Washington in June and is expected to point out that GSP extension should not ve tied up with India’s policy on pricing of medical devices or the dairy industry as the United States had been unilaterally offering the concession to help labour intensive sectors, according to a report in a top Indian business daily.

Though the US Congress had voted to extend the GSP scheme through 2020, it was not done so for India, Indonesia and Kazakhstan. Petitions were filed by the US dairy and medical device industries highlighting trade barriers in India and requesting a review of India’s GSP benefits.

The United States is reportedly unhappy with recent caps imposed by India on medical products such as stents and Prabhu may discuss that issue separately during his visit.

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