Introduction

• General introduction about Generalized System of Preferences (US trade programme, promote economic growth, Trade act 1974).

Main Body

• Fail to provide reasonable access to its markets.
• Criteria of GSP include respecting arbitral awards in favor of US.
• Impact:

(i) Export (likely to affect about 10% of India’s total exports, medical device and dairy)

(ii) Employment loss to small and medium enterprises.

(iii) 1900 products from India would be impacted.

(iv) Trade loss & Balance of payment

Conclusion

• India exported goods worth $5.6 billion under GSP last year, but “our total GSP benefits were to the tune of only $190 million.
• Thus, GSP programme will not have a significant impact.