India and US recent trade talks

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Us has decided to end the preferential trade treatment for India. Shortly after this announcement the government said that it will nor have much impact. Currently India has duty free entry for upto 6.5 billion worth of its exports to America under GSP (Generalized System of Preference.
Commerce Secretary Anup Wadhawan said, “India felt it had arrived at a fairly meaningful offer balancing US aspirations with our concerns, which was not workable with the US side. This is a given situation now. So it seems like we’re looking at a non-GSP trade with the US,”.He also said that India would not retaliate to the US decision.
He explained that there will e o signification impact to India’s exports. He added that the tariff rates that India imposes are also consistent with the rates given by World Trade Organization. However raw materials, intermediary goods across various sectors including inorganic chemicals will be affected a little.
Last year India capped prices of certain products like stent and knee caps and reduced it up to 60 percent. US services a majority of medical devices in India. Local medical equipment manufacturing companies benefited from this price capping and reporter an increase in their sale.
Few days ago Donald Trump quoted India as a high tariff country to which Wadhawan did not agree. The benefit to industry is low, U.S. tariffs are already low. GSP is more symbolic of the strategic relationship, not in value terms,” another government official said. Mr. Wadhawan said US had a few extra demand which could not met hence the deal did not prove favorable.
In April 2018, the US initiated a review of our GSP benefits, mainly on two industries.. medical devices and dairy. But then the US authorities added other issues such as market access, relaxation of various procedural requirements, testing requirements etc. So it became a fairly broad-based review covering a large number of trade issues.” the ministry said.
Inspite of this cancellation there are talks with America over other deals.

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