New Delhi, June 27 (KNN) Union Commerce Minister Piyush Goyal told the Lok Sabha that the government was negotiating with US the issue of withdrawing the Generalized System of Preferences (GSP) status to Indian business houses.

India said the withdrawal of exports incentives by the US is in way recognition of the country's growing economic strength, but it is a unilateral move not in line with norms laid down by World Trade Organization (WTO).

“I would like to state that US has taken a unilateral position. We believe that it is not exactly as per the norms of WTO and General Agreement on Tariffs and Trade (GATT), which have been mutually agreed and are multilateral trade agreements,” he said.

The World Trade Organisation (WTO) is a 164-member multi-lateral body which frames rules for global trade. India and the US are mmebers of this organisation.

The Minister said while India exported over $50 billion or about 4 lakh crore, GSP benefits were given to an export basket worth ₹42,000 crore. From time to time, such issues like withdrawal of GSP may arise during trade negotiations but the minister stated India had a strong and healthy relationship with the U.S. that would ensure stronger diplomatic and trade engagement.

The US' decision came into effect from June 5. It has unproven discrimination in Indian policies against American companies.

On their concerns on medical devices, India has stated it is willing to find a reasonable solution but that has to balance with the country's non-negotiable public health concerns and requirements.

Similarly on the dairy sector, the country has informed the US authorities about use of animal derived feed in America, which hurts domestic religious and cultural sentiments.