Scrapping India's trade privileges could hit US consumers: Senators
NEW DELHI: A US plan to end preferential duty-free imports of up to $5.6 billion from India could raise costs for American consumers, two US senators have told their country's trade office, urging a delay in adopting the plan, and seeking more negotiations.
If President Donald Trump presses ahead with his plan to end the generalized system of preferences (GSP) for India, it could lose the status in early May, Indian officials have said, raising the prospect of retaliatory tariffs.
India is the world's largest beneficiary of the GSP, dating from the 1970s, but trade ties with the US have widened over what Trump calls its high tariffs and concerns over New Delhi's e-commerce policies.
If the United States scraps duty-free access for about 2,000 product lines, it will mostly hurt small and medium businesses in India, such as makers of engineering goods.
Despite close political ties, trade between India and the United States, which stood at $126 billion in 2017, is widely seen to be performing at nearly a quarter of its potential.
Trade relations suffered in the past few months after India adopted new rules on e-commerce reining in how companies such as Amazon.com Inc and Walmart Inc-backed Flipkart do business.
Last June, India said it would step up import duties varying from 20 per cent to 120 per cent on a slew of US farm, steel and iron products, angered by Washington's refusal to exempt it from new steel and aluminium tariffs.
But it has since repeatedly delayed adopting the higher duties.
Ramesh - Chennai - 20 hours ago -Follow
Such issues are not addressed by retaliation. Trade is successful only when both parties meet their objectives. It is not who gets less or more. There is give and take. World has changed a lot since 1970. Review of the agreement to suit today's scenario is what both parties need to do and convince each other and agree to the terms.
Sudhansu Sekhar Das - 19 hours ago -Follow
Nothing will happen to India but US consumer will pay more.There is no substitute to Indian n product and Masala.
Pradeep - 20 hours ago -Follow
India has largest population and wider market than any country. If India want then it can prosper within itself without depending on any countries. That is what the unique religion of Hindu teaches the people. Indian citizen has to stop relying on any products made outside the country. India has to start production of its own weapons, medicines, electronic, etc. rather than depending on developed country like US, Russia, France, Isarel, etc..
boycott - mad cow temple - 19 hours ago
Boycott Chinese products. Stop sending Indian IT talents to US. Both will come to India begging.
Pramod - Sambalpur - 19 hours ago -Follow
India can withstand the tarrif imposed by USA.If America scraps the privilege s enjoyed by India USA has to suffer a lot.pkp
Dreet - 19 hours ago -Follow
Trump bashing India is like India bashing Pakistan
All for polls
Neera Chhabra - 20 hours ago -Follow
Trump is a fool
Abhishek - 20 hours ago -Follow
Har Har Modi! Foreign Policy at its finest level.
Dreet - 19 hours ago -Follow
Yes, we are really happy to buy cheap Indian rice and tea.
Frequent Flyer - Bhubaneshwar - 19 hours ago -Follow
Trumps statement that India is tariff king is actually true.
Mohit - 15 hours ago -Follow
US multinational companies have a big interest in India...Indian market is open for them...USA should not dictate terms with India.
Ravie - Chandigarh - 14 hours ago -Follow
President of USA should understand this, by hitting India they are directly encouraging their biggest competitor / enemies like dragons.
Sree - 15 hours ago -Follow
if US fights with china n india that's enough for it to collapse....
china could be unreliable product but
india is intellectual product...
Arjun Varshney - 15 hours ago -Follow
Trump is a mad and acting like it India Should be careful in dealing with Trump.
Shantanu - Delhi - 17 hours ago -Follow
Face it that Indian exports to the U.S. are quite inconsequential for them and will hardly hurt them. Our exporters will be hurt more. So instead of fake sabre-rattling the right move be to negotiate.
Adamroy - 18 hours ago -Follow
anyway this is Trump's last journey
Rajesh - Bangalore - 19 hours ago
Trump needs to learn it via experience why India is important for its economy. When experience speaks they will correct the mistake.
Ajit Grewal - chandigarh - 19 hours ago -Follow
Shah bhai modi bhai can conduct a SIR JEE kal strike on US
Dreet - 19 hours ago -Follow
Rice gets dearer by 50 cents per kg and I will never vote for Trump.Hahaha
saksh - 18 hours ago -Follow
MR MOTY IS RESPONSIBLE HE IS BAD OMEN
Manoj Kumar Panda - 19 hours ago -Follow
While showing ourselves big, we are slapped by USA with high import tariff on steel and aluminium and now GSP finished. We are dooming ourselves to camouflage our economic data which is perceived negatively by USA.
Makdxb - INDIA - 19 hours ago -Follow
Trump is a business man and he will show his shrewdness on the trade. But it wouldn''t help both side if there is no agreement on taxation. However, people of India is hopeful on good settlement of this issue
funny india - GERMAN - 11 hours ago -Follow
HAHAHAHAHHAAHAHHAHAHA ONE MORE KICK BY INTERNATIONAL PARTNERS HAHAHAHAHAH
Main - New Delhi - 14 hours ago -Follow
those uncle Sam guys should feel pain in á??...e
now world order is changing.
Venkatachalam Ramakrishnan - 20 hours ago -Follow
They are sensible persons. The Trump is an impulsive person and does not have amy deep thinking. Venkatpr
Prathamesh Patil - 20 hours ago -Follow
True said the Senators biggest beneficiary of tax exemption are the citizens of the United States of America so USA government should think about their people before taking any harsh steps
Pradeep Bhatia - 20 hours ago -Follow
For decades India has enjoyed a privileged trade starus. India needs to grow up and stop being a spoilt brat. It needs to reduce tariffs on US goods to level the playing ground.
Bhari Kaam - 20 hours ago -Follow
The western tax model is based on work labor taxation, not consumption taxes!