GSP restoration by US may be on cards

US & India have initiated discussions on a string of thorny issues which had fanned tensions between them. These include issues like restoration of Generalised System of Preferences (GSP), mutual withdrawal of their disputes at the World Trade Organization and removal of higher tariffs on steel (25%) and aluminium (10%) by Washington.

While some industries have not really been affected by the withdrawal of GSP benefits, there are others (chemicals, engineering goods, leather, and gems & jewellery), where the impact has been felt. The discontinuation of GSP is a blow to India’s competitive advantage at a time when US-China trade war has thrown open more opportunities to increase trade. But India must carefully weigh its options, according to some experts.