As soon US President Donald Trump announced that his administration will terminate preferential tariffs applicable to 5.6 billion dollars worth Indian export from 5th June, India's commerce ministry has called the decision unfortunate.
"India had offered resolution on significant US requests to find a mutually acceptable way forward. Unfortunate that this didn't find acceptance by the US," Indian's commerce ministry said in a statement.
This statement of Commorce ministry came after Donald Trump made his decision clear on Saturday. "India, like the US and other nations shall always uphold national interest in these matters. 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," the press release added.
Commerce Ministry issues a statement over designation of India as a beneficiary developing country being terminated by the US. "India had offered resolution on significant US requests to find a mutually acceptable way forward. Unfortunate that this didn't find acceptance by US." pic.twitter.com/sb0nejwcsp— ANI (@ANI) June 1, 2019
Describing that the issues will get resolved mutually, it said, "We view this as part of this regular process and will continue to build our strong ties with the US, both economic and people-to-people."
According to White House proclamation, the trade preference programme will be terminated from 5th June 2019. With this decision, India will no longer be designated as the beneficiary developing country under the jey GSP trade programme.
"I have determined that India has not assured the United States that India will provide equitable and reasonable access to its markets," US president Donald Trump said in a statement.
Noticeably, India is the biggest beneficiary under the GSP programme, that allows preferential duty-free imports of up to 5.6 billion dollars from India.