India Removed from U.S. Preferred Trade Program

Date: June 3, 2019
President Trump announced On May 31 that he will raise tariffs on billions of dollars of goods from India by kicking the nation out of the U.S. Generalized System of Preferences program, Politico reported. The action had been planned for months.

"I have determined that India has not assured the United States that India will provide equitable and reasonable access to its markets," Trump said in a proclamation. "Accordingly, it is appropriate to terminate India's designation as a beneficiary developing country effective June 5, 2019."

This action will raise duties on about $5 billion to $6 billion worth of goods the U.S. imports from India — or slightly more than 10 percent of India's total exports to the U.S. of $54 billion last year, Politico said.

The GSP program allows developing countries to export thousands of goods to the United States without paying export duties. India has been one of the biggest users of the program over the years, Politico said.
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