India Urges US to Reinstate Duty-Free Exports, Seeks GSP Status Restoration
Export: In a recent meeting between Indian Commerce Minister Piyush Goyal and US Trade Representative Ambassador Katherine Tai, India has formally requested the United States to reinstate its beneficiary status under the Generalized System of Preferences (GSP) program. The GSP status, which allowed duty-free exports, was revoked by the Trump administration in 2019.
Commerce Minister Goyal emphasized India’s interest in reclaiming GSP benefits, which would significantly benefit trade between the two nations. Ambassador Tai, in response, acknowledged the possibility of considering reinstatement based on eligibility criteria determined by the US Congress.
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India, once the largest beneficiary of GSP in 2017 with $5.7 billion worth of duty-free exports to the US, hopes to restore favorable trade conditions for about 1,900 products, including engineering goods, chemicals, and textiles.
Beyond trade concerns, the meeting addressed challenges faced by Indian business visitors due to visa processing times. Minister Goyal urged the US to expedite processing to facilitate smoother travel.
The discussions also delved into areas of mutual interest, such as critical minerals, customs and trade facilitation, supply chains, and trade in high-tech products. Both nations expressed a commitment to developing a forward-looking roadmap for enhanced cooperation in these sectors.
Public health discussions, particularly regarding the safety and effectiveness of medical products, were emphasized. India urged an increase in inspections by the US Food and Drug Administration (FDA) in the country to facilitate trade.
Despite challenges in the global trade environment, the ministers acknowledged the strong momentum in India-US bilateral trade, likely surpassing $200 billion in 2023. Both nations expressed a mutual desire to further enhance engagement and diversify bilateral trade, recognizing the unrealized potential between their economies.
Additionally, the commitment to ensure technical regulations do not create unnecessary trade barriers and the appreciation for India’s efforts to modernize its patent system were highlighted. The proposed amendments to streamline compliance requirements and ease the patent filing process were recognized as positive steps toward fostering a conducive trade environment.
As the dialogue continues, the reinstatement of GSP status remains a pivotal point in India’s pursuit of fostering robust and mutually beneficial trade relations with the United States.
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