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India to defend GSP benefits at USTR
Why in the news ?
- To defend its eligibility for benefits under the Generalized System of Preferences (GSP) programme, India is expected to challenge charges levelled against it by the U.S dairy and medical devices industries before the United States Trade Representative (USTR) office
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- The GSP programme provides for the duty free treatment of designated articles when imported from beneficiary developing countries to America.
- The USTR had accused India of implementing “a wide array of trade barriers that create serious negative effects on U.S. commerce.
- What is at stake is exports worth about $5 billion annually, of 1,937 products from India. The USTR is reviewing India’s eligibility under the programme, after complaints from bodies representing the dairy and medical devices industry.
- The petitions calling for a review of India’s GSP benefits, “based on concerns that India has allegedly created trade barriers for these industries,” are “without substantive merits,” Indian embassy official said in a written submission to the USTR.
- India requires that dairy products [be] derived from animals which have never consumed any feeds containing internal organs, blood meal, or tissues of ruminant origin.
- "In this regard, India has explained to the U.S that India’s position is based on religious, cultural and moral grounds. India is committed to respect the religious and cultural beliefs of its people and it will be inappropriate to impute any other considerations to this decision,” India told the USTR.
- India imports dairy products from countries such as Australia and Switzerland.
- India will tell the USTR that this is not a question of market access but of certifications.
- “If several countries can meet this certification requirement, how can’t the U.S?” wondered an Indian official.
Source
The Hindu