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Trump plans to eliminate India's preferential trade treatment

FILE PHOTO: U.S. President Donald Trump will hold a bilateral meeting with Prime Minister Narendra Modi at the ASEAN Summit in Manila, Philippines, November 13, 2017 REUTERS / Jonathan Ernst / File Photo

WASHINGTON (Reuters) – U.S. President Donald Trump said on Monday that he would abolish India's preferential trade treatment in a program that allows $ 5.6 billion of Indian exports for US-free duty.

Trump, who promised to reduce the United States trade deficit, repeatedly called India on its high tariffs.

"I take this step because, after intense cooperation between the US and Indian governments, I found that India did not provide the United States with fair and reasonable access to Indian markets," said Trump. a letter to Congressional leaders.

According to the US Trade Representative Office, India would not enter into force for the GSP program for at least 60 days after the announcement of the Congress and the Government of India, and their presidents will announce them.

According to the US Trade Representative Office, in 2017, the United States lack of trade in goods and services with India was $ 27.3 billion.

India is the world's largest beneficiary of the GSP program, and the elimination of participation is the strongest criminal case against India as Trump took office in 2017. t

Trade relations between the United States and India have been damaged after India has published new rules limiting the business of Flipkart, supported by Amazon.com Inc and Walmart Inc.

E-commerce rules have been implemented by New Delhi to force global card payment companies, such as Mastercard Inc and Visa Inc, to place data in India and set higher tariffs for electronic products and smartphones.

Report by Eric Beech; Editing Sonya Hepinstall and Lisa Shumaker

Standards:Principles of Thomson Reuters Trust.

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