US President Donald Trump has announced that he was ending India's $5.6 billion trade concessions under the Generalized System of Preferences (GSP) program accusing New Delhi of not providing Washington "equitable and reasonable access" to its markets. Reportedly Trump, who is on a mission to expand marker access abroad and end trade deficits, made the announcement on Monday in a letter to House Speaker Nancy Pelosi and Vice President Mike Pence in his capacity as the Senate President.
Meanwhile the US Trade Representative's Office (USTR) said that the preferences will end in 60 days after the notification to Congress and the Indian government. Accordingly Trump said that he will continue to monitor if India is "providing equitable and reasonable access to its markets" and meet the GSP eligibility criteria. Recently India had opposed proposals to end the GSP saying that it would be "discriminatory, arbitrary" and hurt the country's development.
Apparently Congress establishes the conditions of eligibility for GSP, which include "providing the US with equitable and reasonable market access, protecting workers' rights and combating child labour". Moreover Trump wrote in his letter: "He is taking this step because, after intensive engagement between the United States and the government of India, I have determined that India has not assured the United States that it will provide equitable and reasonable access to the markets of India."
