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GSP Rollout Bill Introduced in US to augur well for India: IACC

Updated: Feb 16, 2018 08:28:49am
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GSP Rollout Bill Introduced in US to augur well for India: IACC

New Delhi, Feb 16 (KNN) The Indo-American Chamber of Commerce (IACC) said that the introduction of the bill seeking to extend the validity of Generalized System of Preferences (GSP) in the US House of Representatives recently has reassured the continuity of the US policies focused on the developing and least developed countries.

Vasant Subramanyan, National President, IACC, in a press statement said that India has a high stake in the continuity of GSP since nearly 10% of its total exports to the US are through the GSP route.

In absolute terms, in 2016, India exported US$ 4.7 billion under the GSP against a total merchandize export of US$ 41.6 billion.

The likely rollover of the GSP will ensure that India can avail this facility at least for the next three years, he added.

Importantly, GSP period had expired on 31st December 2017 and there was a speculation that under Trump Administration’s stress on America First Policy, this facility, which allows a select developing countries export some products duty free to the US, may get eclipsed.

Now the Bill proposing to extend the program for another three years was introduced the other day by the trade sub-committee Chairman Dave Reichert, among others, clearing the doubt about the possible scrapping of the incentives.

The chamber informed that with the provision to continue, India is set to be one of the major beneficiaries of this program.

The IACC Chief said that there is an overwhelming public opinion generated in both the countries to come together more intensely than ever before in the strategic and economic engagement space.

Citing a case study, IACC informed that according to a recent study undertaken by US Think Tank “Center for American Progress”, a set of ideations that can trigger the economic partnership between the two countries to a new height and direction. (KNN/DA)

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