India Urges the U.S. to Reinstate GSP Status for Duty-Free Exports

India has formally requested the United States to reinstate its status under the Generalized System of Preferences (GSP) program, a designation revoked by the former Trump administration in 2019. This appeal was raised during the India-US Trade Policy Forum (TPF) meeting, co-chaired by Union Minister of Commerce and Industry Piyush Goyal and US Trade Representative Ambassador Katherine Tai.

In a joint statement issued after the meeting, Commerce Minister Goyal reiterated India's interest in regaining its beneficiary status under the GSP program. Ambassador Tai acknowledged the possibility of considering this restoration, contingent upon the eligibility criteria defined by the US Congress.

India had been the largest beneficiary of the GSP status in 2017, enabling duty-free export of $5.7 billion worth of goods to the US, covering approximately 1,900 products like engineering goods, chemicals, and textiles.

The ministers also acknowledged the significant contribution of professional and skilled workers, students, investors, and business visitors to the bilateral economic and technological partnership. Minister Goyal addressed challenges faced by Indian business visitors due to visa processing delays, urging the United States to expedite processing times.

The joint statement highlighted the identification of key areas for cooperation between the US and India, including critical minerals, customs and trade facilitation, supply chains, and trade in high-tech products. Both nations committed to developing a forward-looking roadmap to enhance cooperation in these areas.

The ministers emphasized their mutual interest in public health discussions to ensure the safety and efficacy of medical products. India underscored the necessity for increased inspections by the US Food and Drug Administration (FDA) to facilitate trade, and the US acknowledged the FDA's efforts to augment staffing for pharmaceutical inspections in India.

The statement also welcomed the positive momentum in India-US bilateral trade, which continued to grow, likely surpassing $200 billion in calendar year 2023. The ministers expressed their commitment to furthering engagement to increase and diversify bilateral trade.

Additionally, both parties reiterated their commitment to ensuring that technical regulations, such as Quality Control Orders, do not create unnecessary trade barriers. The US welcomed India's initiatives to modernize its patent system and registration processes, particularly through proposed amendments aimed at streamlining compliance requirements and easing the patent filing and granting process.

(With Agency Inputs)