USA GENERALIZED SYSTEM OF PREFERENCES (GSP) PROGRAMME

About: 

• Under the United States Generalized System of Preferences (GSP) programme, nearly 2,000 products including auto components and textile materials can enter the US duty-free if the beneficiary developing countries meet the eligibility criteria established by Congress. 
  
  
• The GSP criteria include respecting arbitral awards in favour of US citizens or corporations, combatting child labour, respecting worker rights, providing intellectual property protection and providing the US with equitable and reasonable market access. 
  
  
• Countries can also be graduated from the GSP programme, depending on factors related to economic development. 
  
  
• India was the largest beneficiary of the programme in 2017 with USD 5.7 billion in imports to the US given duty-free status and Turkey the fifth largest with USD 1.7 billion in covered imports. 
  
  

Recent decision: 

• USA has given a 60-day withdrawal notice to India on the GSP benefits extended by US. 
  
  
• According to U.S. President Donald Trump, India had "not assured" the US that it would "provide equitable and reasonable access" to the markets of India in accordance with the GSP eligibility criteria. 
  
  
• Trump, who has vowed to reduce US trade deficits, has repeatedly called out India for its high tariffs. In October 2018, the US President described India as a "tariff king" as he reiterated his allegations that India has a high tariff rate on various American products.