New Delhi, June 1 (KNN) President Donald Trump has ended India's designation as a beneficiary developing nation under a key preferential trade program. The United States of America (USA) has withdrawn India’s GSP benefits with effect from June 5, 2019

The Generalised System of Preference (GSP) is the largest and oldest US trade preference program and is designed to promote economic development by allowing duty-free entry for thousands of products from designated beneficiary countries.

In a proclamation yesterday, President Donald Trump had terminated India's designation as a beneficiary developing nation under the key GSP trade programme after determining that it has not assured the US that it will provide "equitable and reasonable access" to its markets.

In a press statement, Commerce Ministry said “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, it added.

Ministry said “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”, it added.