The United States of America (USA) has w.e.f. 5 June 2019 withdrawn India’s GSP benefits. These are unilateral, non-reciprocal and non-discriminatory benefits extended by some developed countries to developing countries. India as part of our bilateral trade discussions, had offered resolution on significant US requests in an effort to find a mutually acceptable way forward. It is unfortunate that this did not find acceptance by the US. India, like the US and other nations shall always uphold its national interest in these matters. We have significant development imperatives and concerns and our people also aspire for better standards of living. This will remain the guiding factor in the Government’s approach.

In any relationship, in particular in the area of economic ties, there are ongoing issues which get resolved mutually from time to time. We view this issue as a part of this regular process and will continue to build on our strong ties with the US, both economic and people-to-people. We are confident that the two Nations will continue to work together intensively for further growing these ties in a mutually beneficial manner.

Generalized System of Preferences withdrawal affects trade relations; India will uphold national interest and continue bilateral engagement. Withdrawal of GSP benefits by the United States removes unilateral, non reciprocal preferential trade access previously extended to India; India engaged in bilateral discussions offering concessions which were not accepted, and characterises the action as a policy decision affecting preferential market access rather than a bilateral punitive measure while committing to uphold national interest and continue constructive economic engagement.