GSP Termination for India Questioned by Senators
U.S. Trade Representative Robert Lighthizer addressed the recent end to India's Generalized System of Preferences benefits eligibility (see 1906050043) in written responses to two senators on the Senate Finance Committee. Sen. John Cornyn, R-Texas, asked about GSP and the possibility of Section 301 actions against India at a June 18 hearing at which Lighthizer appeared. Lighthizer replied, "A USTR team ... recently visited New Delhi to meet with a variety of Indian government officials in an attempt to make progress on the broad range of trade barriers we have highlighted. We remain committed to finding solutions to the myriad of trade concerns we have with India. I hope that the Government of India demonstrates a comparable commitment to resolving our concerns."
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Sen Bob Menendez, D-N.J., said that medical devices are a key industry in his state, and he agrees with Lighthizer that India discriminates against U.S. companies that sell them there. But, he said, "At the same time, we have dozens of small and medium-sized companies in New Jersey that import from India and are struggling to adapt to the sudden loss of trade preferences. Some of them that were hit hard by the China tariffs moved their sourcing to India, only to find out shortly thereafter that the Administration is removing trade preferences there. In short, the status quo isn’t an acceptable solution for any of my constituents. Can you commit to making it a priority to solve our issues with India so they can be reinstated into GSP? What are the criteria that India has to meet to be reinstated?"
Lighthizer replied, "The decision to terminate India’s GSP beneficiary status was not taken lightly and was in accordance with the Congressionally-mandated GSP eligibility criteria that govern the program. For many years, India has prevented effective access for many U.S. goods and services while simultaneously benefiting from largely open access to the U.S. market, including the extension of special preferences under GSP. India’s failure to provide fair and adequate market access was harmful to U.S. interests and it was important that we enforce the statutory criteria for these benefits." He did not say what criteria India would have to meet to be reinstated.