Delhi: The previous Trump administration had revoked the Generalized System of Preferences (GSP) for trade from India. GSP allows eligible developing countries to export duty-free goods to the US.
The Modi government and the Biden administration are ‘thinking big’ in terms of their trade and commerce ties. A top Indian official said on Wednesday that Union Minister Piyush Goyal has rejected earlier talk about a mini trade deal or free trade agreement. He said that revoking the GSP is not a priority for New Delhi.
The previous Trump administration had revoked the Generalized System of Preferences (GSP) for trade from India. GSP allows eligible developing countries to export duty-free goods to the US.
The two countries were on the verge of a mini trade deal during the previous administration as well, which is now off the table. The Biden administration is also not in favor of the free trade agreement that representatives from both sides are now talking about.
Union Commerce and Industry Minister Piyush Goyal told reporters, “I think I have not seen any enthusiasm from the Indian industry in terms of GSP.
To focus my energies on the GSP issue, I have taken it up with my counterparts today.” Goyal co-chaired the India-US Trade Policy Forum meeting with US Trade Representative Catherine Tay. He said these things in the news conference that followed. “It is an issue, but it is not something that is at the top of our priority list,” he said.
Responding to a question, the minister said, “I have put forth my stand that GSP should be restored. But I can assure you that trade between the two countries is growing very fast. I don’t think the withdrawal of GSP is detrimental to our growing trade ties.”
Responding to another question on the mini trade deal, Goyal said that “it was very limited”. Next we are thinking big.”
“Of course, we are doing free trade deals, we have implemented it with Australia and the United Arab Emirates. We are in active dialogue with the UK, Canada with Israel and the European Union on this.
Asked about the prospects of a free trade agreement with the United States, the minister said, “At present, we are not looking at any free trade deal with any country as a political policy.” “At the moment, FTA is not on the table,” he insisted. Instead, we are focusing on greater market access. We are focusing on ease of doing business between the two countries for trade, investment and business.”
Meanwhile, India and the United States on Wednesday A New TPF Working on Flexible Business Launched the group. A joint statement said that this new working group will enable officials to deepen bilateral dialogue on a range of issues that will enhance the flexibility and stability of trade relations. With this, we will be able to face global challenges together.