A group of 25 influential American lawmakers has urged the US Trade Representative not to terminate the GSP programme with India after the expiry of the 60-day notice on Friday, saying the country’s companies seeking to expand their exports to India could be affected.
The Generalized System of Preference (GSP) is the largest and oldest US trade preference programme and is designed to promote economic development by allowing duty-free entry for thousands of products from designated beneficiary countries.
President Donald Trump announced on March 4, the US intends to terminate India’s designations as a beneficiary developing country under the GSP programme.
On the eve of the end of the notice period, the 25 members of the US House of Representatives urged US Trade Representative Robert Lighthizer to continue negotiating a deal that protects and promotes jobs that rely on trade – both imports and exports – with India.
They argued that terminating GSP for India would hurt American companies seeking to expand their exports to India.
Noting that the 60-day notice period expires in the middle of general elections in India, the Congressmen said that it will be up to India’s next government to resolve outstanding issues with the US.