New Delhi, Aug 22 (KNN) The US is considering withdrawing the special status under Generalized System of Preferences (GSP) given to the carpet exports of Indian origin in the US.

The withdrawal is not a good signal for the Indian carpet industry comprising of over 70 per cent of the Micro, Small and Medium Enterprises(MSMEs) that produce primarily for exports, CPEC informed.

Talking to KNN, Mahavir Pratap Sharma, Chairman of Carpet Export Promotion Council (CEPC), said that the carpets made by Indian industry and exported to the US fall under Generalized System of Preferences (GSP), because of which there are certain tariff exemptions given to Indian carpet in the US Market.

With reports of US looking at snatching off the special status, there is an anxiety in the Indian carpet making industry.

“The removal of Indian carpet exports from the US’s list of GSP would simply mean that the carpets of Indian origin would become expensive in the US, this in the long term may discourage US importers to procure carpet from India”, Sharma said.

He further informed that the move might shift the focus of the US market to other rival countries including Pakistan and Nepal.

Sharma however maintained that despite the move being against the best interest of the Indian industry, Pakistan and Nepal are not in a position to compete with the quality and variety of Indian carpets.

“At present India makes more than 50 variety of carpets, whereas other competing nations in the GSP make not more than or two” he informed.

Commenting upon the reason of the removal of Indian carpet from the GSP list, Sharma said that US is considering India as a country that is close to developed nation list, therefore it can now sustain without these provisions.  He informed that his association is pushing the matter   against the move and has been holding talks both with the government in home as well as the US government.

Earlier news reports surfaced that the US is scheduled to withdraw Generalized System of Preferences (GSP), which are unilateral tariff preferences granted by the US to Indian origin exports, from 48 tariff lines.

The products that may lose the advantage include carpets,  essential oils, ibuprofen  and tobacco. (KNN/ DA)