Wednesday, August 21, 2019


Exports of mangoes to US to be affected as duty-free eligibility reviewed
Saturday, 03 November, 2018, 08 : 00 AM [IST]
Our Bureau, New Delhi 
Exports of mangoes and several other agri products from India to the US will be affected as a recent federal proclamation issued by US president Donald Trump includes India among those that will no longer be treated as beneficiary developing countries with respect to one or more eligible article for duty-free import into the US.

The move has come following review of eligibility of India along with many other countries under the Generalised System Preferences (GSP) in April this year by Trump.

“I have determined that in 2017 certain beneficiary developing countries exported eligible articles in quantities exceeding the applicable competitive-need limitations. I hereby terminate the duty-free treatment for such articles from such beneficiary developing countries,” said Trump in his proclamation letter. 

This decision will impact several Indian agri products that include pigeon pea, areca nuts fresh or dried, mangoes, prepared or preserved by vinegar and so on. Also included in the list were cucumbers including gherkins, provisionally preserved but unsuitable in that state for immediate consumption, groats and meals of rice.

Earlier, in its review of India’s eligibility for GSP regime, the US government stated that USTR (United States Trade Representative) is launching a self-initiated GSP eligibility review of India based on concerns related to its compliance with the GSP market access criterion and is also accepting two petitions related to the same criterion.

India’s duty free export to the US was around US$5.6 billion in 2017.

“The petitions filed by the US dairy industry and the US medical device industry requested a review of India’s GSP benefits, given Indian trade barriers affecting US exports in those sectors. India has implemented a wide array of trade barriers that create serious negative effects on US commerce. The acceptance of these petitions and the GSP self-initiated review will result in one overall review of India’s compliance with the GSP market access criterion,” read a statement from the USTR.

Meanwhile, deputy U S trade representative Jeffrey Gerrish while elaborating on GSP, said in a statement, “GSP provides an important tool to help enforce the Trump administration’s key principles of free and fair trade across the globe.”

He added, “The president is committed to ensuring that those countries who receive GSP benefits uphold their end of the bargain by continuing to meet the eligibility criteria outlined by Congress.”

Trump concluded, “We hope that India, Indonesia, and Kazakhstan will work with us to address the concerns that led to these new reviews."
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