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US president Donald Trump to end their preferential trade treatment for India by June 5. Trump had announced his intention to remove India from the Generalized System of Preferences (GSP) program in early March.

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

The Generalized System of Preference (GSP) is the largest and oldest US trade preference programme and is designed to promote economic development by allowing duty-free entry for thousands of products from designated beneficiary countries. The programme allows emerging countries to export goods to the United States without paying duties.

Meanwhile, India, which had been the top beneficiary of the deal under which it exported $5.6 billion to the United States in 2017, protested that it could make no counter-proposals due to laws that forbid policy-making during the election season.
But, a senior US official voiced hope for warm relations with Modi after he led his Hindu nationalist party to an overwhelming re-election victory but said that the March decision would move forward.

The Trump administration said it was removing India from the GSP due to trade barriers and also terminating the status for Turkey on the grounds that it was no longer a developing country.

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