India wants the US to resume trade concessions under GSP.The US terminated India's designation as a beneficiary developing nation under GSP in June 2019. India calls the decision discriminatory, arbitrary, and detrimental to the development, finance and trade needs of India, which is a vast and diverse developing country with unique challenges. This is an US trade preference program and is designed to promote economic development by allowing duty-free entry for thousands of products from designated beneficiary countries.
India came under the GSP program in 1975. The program is limited to certain categories like apparel and footwear with the aim of alleviating poverty by promoting exports by poor craftspeople and artisans in those sectors. In retaliation for the US raising tariffs of steel and aluminium imports from India, India has threatened to increase duties on agricultural products like walnuts, apples and other fruits imported from the US. The US dairy industry says India’s sanitary and phytosanitary requirements are unscientific and so exporting to India is difficult. According to Indian laws imports should not come from cows that have been given cannibalised feed that includes offal or other meat products. India provides unimpeded market access to dairy products from all countries that meet the criteria.