The U.S. is expected to make an announcement on whether India will retain eligibility under the Generalized System of Preferences (GSP) program within the next two weeks according to unidentified sources cited by Reuters. The Office of the U.S. Trade Representative (USTR) is currently reviewing the eligibility of Indian products for duty-free entry into the U.S. under GSP as a response to petitions from the dairy and medical device industries. On November 1, 2018, USTR suspended GSP tariff reductions on 90 imports from India worth $75 billion including textiles, chemicals, and musical instruments.
The Reuters article indicated that India’s recent moves to restrict U.S. e-commerce and data localization requirements have also encouraged a change to their status as a GSP country. U.S. Department of Commerce Secretary Wilbur Ross is expected to visit India next week.
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