"I hope we can work to solve our issues with India so they can be reinstated
into the GSP," Senator Robert Menendez told Lighthizer during a
Congressional hearing
A top American Senator, from the opposition Democratic Party, on Tuesday
urged US Trade Representative Robert Lighthizer, to reinstate India into the
Generalized System of Preference, which President Donald Trump has
terminated.
India''s designation as a beneficiary developing nation under the key GSP
trade programme was terminated by Trump after determining that it had not
assured the US that it will provide "equitable and reasonable access to its
markets". The termination is effective from June 5.
"I hope we can work to solve our issues with India so they can be reinstated
into the GSP," Senator Robert Menendez told Lighthizer during a
Congressional hearing Tuesday.
But at the same time, he appeared to be supportive of the concerns of the
Trump administration with regard to India.
"You have to know that if I''m a trading partner I want to have some predictive
ability and when I make a deal with you and then you start tariffs on me for
something that has absolutely nothing to do with trade then that is
unpredictable," Menendez said.
Lighthizer did not directly respond to the question from Menendez in this
regard, but in his opening statement said the Trump administration has been
reviewing the GSP eligibility.
In the last one month, President Trump has terminated GSP benefit of two
of his closest allies and friend Turkey and India
"We at USTR are very much focused on changing these rules where they are
unfair to American farmers, ranchers, workers, and businesses. This has
included renegotiating KORUS, which you are aware, and NAFTA, which you
have just discussed and will discuss further," Lighthizer said.
"We also have been reviewing GSP eligibility; actively engaging in TIFA talks
with many, many countries ; and reviewing the rules and functions of the
WTO. USTR has also been active in enforcing the existing obligations of our
trading partners," he said.
"We''ve brought many WTO cases. We''ve filed counter notifications at the
WTO and worked with other WTO members on a proposal to improve
compliance with the existing WTO notification obligations," Lighthizer said.
The USTR, he said, has engaged directly with trading partners under existing
agreements.
For example, the US has successfully resolved concerns with Peru after
requesting the first-ever environmental consultations in the US-Peru trade
promotion agreement.
President Trump, he said, is troubled by the huge and persistent trade
deficits which the US has with many countries.
"These deficits are the result of many factors, faster economic growth,
currency valuations, and to some extent tax policy, but they are also partially
the result of trade rules that often times are unfair and lock in non-economic
advantages for our trading partners," he said.
The USTR, Lighthizer said is very much focused on changing these rules
where they are unfair to American farmers, ranchers, workers, and
businesses.
Under the 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
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, according to a Congressional
Research Service report issued in January
The GSP criteria includes, among others, respecting arbitral awards in favour
of the US citizens or corporations, combating child labour, respecting
internationally recognised worker rights, providing adequate and effective
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.
Source: The Business Standard, India Wednesday, 19 June 2019