The Trump administration intends to remove India and Turkey from the Generalized System of Preferences (GSP) program, which grants duty-free access to certain developing countries’ exports to the U.S.
The administration said India’s termination from the GSP is the result of the country’s “failure to provide the United States with assurances that it will provide equitable and reasonable access to its markets in numerous sectors.”
The U.S. began an eligibility review of India’s compliance with the GSP market access criterion in April 2018. India has imposed numerous trade barriers that “create serious negative effects” on U.S. commerce, the Office of the U.S. Trade Representative said.
To remain in the GSP, countries must respect arbitral awards in favor of U.S. citizens or corporations, combat child labor, respect worker rights, provide adequate intellectual property protection and provide the U.S. with reasonable market access.
By statute, these changes may not take effect until at least 60 days after the notifications to Congress and the governments of India and Turkey and will be enacted by a presidential proclamation.