Ans.
1. The office of the United States Trade Representative (USTR) has taken off India from the list of developing countries that are eligible for duty free access to US markets. Under the Generalized System of Preferences (GSP) scheme.
2. Generalized System of Preferences (GSP) is an umbrella that comprises the bulk of preferential schemes granted by industrialized nations to developing countries.
3. According to USTR, India’s share in global trade was 2.1 % for exports and 2.6% for imports in 2017.
4. Also India, along with nations like Argentina, Brazil, Indonesia, and South Africa, is part of the G20 bloc and G20 membership indicates that a country is developed.
5. India is the largest beneficiary nation under the GSP.
6. In 2018, India exported goods worth $6.3 billion (as per USTR figures) to the US under the GSP, accounting for around 12.1% of India’s total export to that country.
7. Despite having a minimal impact on India's overall outbound trade with the US, specific exports from India in a diverse set of sectors such as jewellery, leather, pharmaceuticals, chemicals and agricultural products may face higher costs and competition.
8. US is also the loser as their consumers and corporates miss cheaper goods.
Practice Question
Que. What are the reasons for and implications of the policy changes in relation to Cash Reserve Ratio(CRR) recently?
