India requests extension of GSP status until after national elections

May 24, 2019

Citing an inability to make major policy decisions during its national election period, India has requested a 90-day extension of its inclusion in the Generalized System of Preferences (GSP), program that eliminates tariffs on non-import sensitive goods from developing countries that meet specific eligibility criteria. In March, U.S. Trade Representative (USTR) Robert Lighthizer announced plans to end benefits for India, as well as Turkey, indicating that India has implemented a wide array of trade barriers that create serious negative consequences on U.S.  commerce. A coalition of U.S. business groups has encouraged President Trump to maintain India’s GPS status to avoid U.S. companies and consumers being burdened by tariffs on imports from the country.

NAFEM Secretary/Treasurer, Richard Packer, CFSP, president, American Metalcraft, Inc., Franklin Park, Ill., explained the significance of removing India’s GSP status. “The tariffs on imports from China increased costs, so companies looked to manufacture in other countries. India is one of these countries that gained new business. Now, with the GSP denial for India, costs will again increase and the situation for importers will continue to be uncertain.”

Categorized in: Advocacy News, Taxes, Tariffs & Trade