New Delhi, Mar 5 (KNN) The United States (US) President Donald Trump has given a 60-day withdrawal notice to India on the Generalized System of Preferences (GSP) benefits extended by US, according to Ministry of Commerce & Industry.

Generalized System of Preferences (GSP) is a preferential tariff system extended by developed countries to developing countries (also known as preference receiving countries or beneficiary countries). It is a preferential arrangement in the sense that it allows concessional low/zero tariff imports from developing countries.

In India's case the GSP concessions extended by the US amounted to duty reduction of only USD 190 million per annum.

Since the review initiated by the US in April 2018 on India's GSP benefits, India and US have been discussing various trade issues of bilateral interest for a suitable resolution on mutually acceptable terms.

GSP benefits are envisaged to be non-reciprocal and non-discriminatory benefits extended by developed countries to developing countries.

The United States decision to “terminate” India’s designation as a beneficiary of its GSP is because of India’s failure to provide assurances that it will give the US ‘equitable and reasonable’ access to its markets in numerous sectors.