Despite its desire to build warm relations with the newly elected Indian government, the Trump administration is steadfast on removing India from the Generalized System of Preferences (GSP) due to trade barriers. Dairy products and motorcycles are among the US products that attract a high tariff in India. GSP gives a favorable access to goods from developing countries.
An official from US said on condition of anonymity that India “remains one of the least open major economies in the world,” adding: “The Trump administration is committed to ensuring free, fair and reciprocal trade.”
India has been a major beneficiary of GSP, under which it exported $5.6 billion to the US in 2017. It had earlier objected that it could make no counter-proposals due to laws that bar policy-making during the election season.
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