Connect with us

Top News

Trump announces plans to end $5.6 bn preferential trade programme for India (Lead)

Published

on

By Arul Louis
New York, March 5 (IANS) US President Donald Trump has announced that he is ending India’s $5.6 billion trade concessions under the Generalised System of Preferences (GSP) programme, accusing New Delhi of not providing Washington “equitable and reasonable access” to its markets.

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.

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.

Meanwhile, 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.

India had opposed proposals to end the GSP saying that it would be “discriminatory, arbitrary” and hurt the country’s development.

India is the largest beneficiary of the GSP exporting goods worth $5.6 billion to the US under the programme. 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”.

Trump wrote in his letter: “I am taking this step because, after intensive engagement between the US and the government of India, I have determined that India has not assured the US that it will provide equitable and reasonable access to the markets of India.”

The USTR said: “India has implemented a wide array of trade barriers that create serious negative effects on US commerce”, but did not mention the specifics in its statement.

“Despite intensive engagement, India has failed to take the necessary steps to meet the GSP criterion”, it added.

The total India-US trade was $126.2 billion in 2017, with a $27.3 billion deficit for the US, according to the USTR. India’s total exports were worth $76.7 billion and the end to GSP affects only a small part of it limited to $5.6 billion.

At a hearing held by the USTR last June on withdrawing India’s GSP, the Minister in charge of Commerce at the Indian Embassy in Washington, Puneet Roy Kundal, said that withdrawing the GSP benefits “would be discriminatory, arbitrary, and detrimental to the development, finance and trade needs of India, which is a vast and diverse developing country with unique challenges”.

The primary aim of the GSP is to help developing countries, particularly in sectors where the benefits can reach the poor.

Trump also said that he was ending the GSP for Turkey because of its economic success and rising living standards that would no longer make it eligible for the programme that is meant to help developing countries.

The President has been on a warpath against what he said were high tariffs on US imports to India. While pushing for the Reciprocal Trade Act in January, he brought up India’s duty on American whiskey, which he said was 150 per cent and on Harley Davidson motorcycles that he asserted he had gotten reduced from 100 to 50 per cent.

The decision to end the GSP may not entirely be influenced by high tariffs imposed by India on US imports. The two countries have had differences over the restrictions placed on e-commerce by Amazon and on Walmart subsidiary Flipkart and on data housing by Visa and Mastercard.

The decision comes as the US is reported to be making headway in trade negotiations with China aimed mainly at cutting American trade deficits with a deal expected soon.

Ironically, a trade group warned that taking ending GSP for India could end up helping China.

The American Apparel and Footwear Association said in a written testimony that if GSP benefits are withdrawn for India as well as Indonesia and Thailand, “companies will have no choice but to return to sourcing from China”.

It pointed out that Trump has threatened to impose 10 per cent punitive duties on US travel goods imports from China and ending the GSP for India “means that not only will sourcing return from China, but American consumers will pay far higher prices for their travel goods”.

The US dairy industry was a strong advocate of ending the GSP for India citing its difficulties in exporting to India.

Shawna Morris, Vice President of the National Milk Producers Federation and the US Dairy Export Council, at the the June USTR hearing accused India of refusing to provide them equitable and reasonable access to its markets through “unscientific sanitary and phytosanitary requirements”.

These requirements by India were that the exports should not come from cows that have been given cannibalised feed that includes offal or other meat products.

Kundal countered that it was not an issue fo of market access but of “certification given the religious, cultural and moral sensitivities” and India provide unimpeded market access to dairy products from all countries that met the criteria.

Another opposition came from the medical sector based on price controls on medical devices imposed by India. Kundal said that these were necessitated by India’s need to provide affordable health care to its citizens.

(Arul Louis can be reached at [email protected] and followed on Twitter @arulouis)

–IANS
al/ksk/soni/

Continue Reading

Top News

Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma

Published

on

By

World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.

Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.

During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.

On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”

Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.

It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.

Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.

Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”

On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”

The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.

Continue Reading

Trending