SMEs seek renewal of duty free access to US market
Updated: Jul 24, 2013 02:16:08pm
Mumbai, Jul 24 (KNN) As the US Vice President Joe Biden interacted with leaders of the Indian industry, a strong demand was made for renewal of duty free exports from the Indian SMEs to the American market.
The US grants duty free entry of Indian exports of items which are of interest to the small and medium enterprises. These are: most manufactured items; many types of chemicals, minerals and building stone; jewellery; many types of carpets; and certain agricultural and fishery products.
The facility is enjoyed by developed countries under the Generalised System of Preferences (GSP). However, for India and some other select countries, the market access to the US under this system will stop from July-31.
Exporters feel that it would further hit the Indian exports which are facing slowdown in most of the developing markets including the US and European Union.
Biden who is on a maiden visit to India to bolster ties met with Indian business, trade and investment leaders.
According to the Office of the US Trade Representative, the US Generalized System of Preferences (GSP) is a program designed to promote economic growth in the developing world by providing preferential duty-free entry for up to 5,000 products when imported from one of 127 designated beneficiary countries and territories.
The GSP program also supports US jobs. US businesses imported USD 19.9 billion worth of products under the GSP program in 2012, including many inputs used in U.S. manufacturing.
Further, according to a 2005 US Chamber of Commerce study, over 80,000 American jobs are associated with moving GSP imports from the docks to farmers, manufacturers, and retail shelves. GSP was instituted on January 1, 1976, by the Trade Act of 1974.
Among the products that are not eligible for GSP duty-free treatments are: most textiles and apparel; watches; and most footwear, handbags, and luggage products.
In October 2011, President Obama signed legislation to reauthorize the GSP program through July 31, 2013.
In 2011 and 2012, India was the top GSP supplier to the US at USD 3.7 billion and USD 4.5 billion under the GSP programme, the main beneficiaries being the labour-intensive micro, small and medium enterprises.
The process of renewal, reports say, is under review. In yet another development in the Trade Policy Agenda released in March, the US administration had called for the GSP to be renewed beyond 2015.
However, according to reports, there has been opposition to the renewal in the US legislation Congress, with trade bodies linking the issue with Indian IPR laws which they claim is impacting US companies operating in India. (KNN/ES)
The US grants duty free entry of Indian exports of items which are of interest to the small and medium enterprises. These are: most manufactured items; many types of chemicals, minerals and building stone; jewellery; many types of carpets; and certain agricultural and fishery products.
The facility is enjoyed by developed countries under the Generalised System of Preferences (GSP). However, for India and some other select countries, the market access to the US under this system will stop from July-31.
Exporters feel that it would further hit the Indian exports which are facing slowdown in most of the developing markets including the US and European Union.
Biden who is on a maiden visit to India to bolster ties met with Indian business, trade and investment leaders.
According to the Office of the US Trade Representative, the US Generalized System of Preferences (GSP) is a program designed to promote economic growth in the developing world by providing preferential duty-free entry for up to 5,000 products when imported from one of 127 designated beneficiary countries and territories.
The GSP program also supports US jobs. US businesses imported USD 19.9 billion worth of products under the GSP program in 2012, including many inputs used in U.S. manufacturing.
Further, according to a 2005 US Chamber of Commerce study, over 80,000 American jobs are associated with moving GSP imports from the docks to farmers, manufacturers, and retail shelves. GSP was instituted on January 1, 1976, by the Trade Act of 1974.
Among the products that are not eligible for GSP duty-free treatments are: most textiles and apparel; watches; and most footwear, handbags, and luggage products.
In October 2011, President Obama signed legislation to reauthorize the GSP program through July 31, 2013.
In 2011 and 2012, India was the top GSP supplier to the US at USD 3.7 billion and USD 4.5 billion under the GSP programme, the main beneficiaries being the labour-intensive micro, small and medium enterprises.
The process of renewal, reports say, is under review. In yet another development in the Trade Policy Agenda released in March, the US administration had called for the GSP to be renewed beyond 2015.
However, according to reports, there has been opposition to the renewal in the US legislation Congress, with trade bodies linking the issue with Indian IPR laws which they claim is impacting US companies operating in India. (KNN/ES)
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