19 March 2019
INDIA: US$5.6 billion Worth of Exports Set to Lose Duty-Free Access to US as of May
Many of the country’s exports are set to lose their duty-free access to the US market as of May this year. Their previous entitlement, under the terms of the US Generalised System of Preferences (GSP) programme, has been rescinded by a Presidential Proclamation which is likely to affect up to US$5.6 billion worth of Indian exports. The Indian government, however, has indicated that it expects the true cost to be closer to US$190 million, given the decline in the number of products actually enjoying duty free access over recent years.
The US move follows its widely-publicised concerns over the allegedly unfavourable treatment of many of its own exports to India, as well as the Indian governments imposition of price controls on imported medical devices and planned changes to the local e-commerce FDI regulations.