What US trade privileges has India lost?

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India's Loss of US Trade Privileges

India has lost its trade privileges under the Generalized System of Preferences (GSP) scheme, a move initiated by the United States. This withdrawal, effective from June 5, means India can no longer benefit from duty-free exports to the US for a range of goods. Prior to this, India was the largest beneficiary of the GSP program, with eligible exports valued up to US$5.6 billion annually.
Withdrawal of Generalized System of Preferences

The United States officially ended India's trade privileges under the GSP on June 5. This program was designed to allow developing countries to export certain goods to the US without tariffs, thereby promoting economic growth. For India, this scheme represented a significant conduit for duty-free exports, amounting to a substantial portion of its trade relationship with the US.
Impact on Indian Exports

The removal from the GSP scheme directly affects India's ability to export goods to the US on a duty-free basis. This change was enacted by President Donald Trump, marking a significant shift in the trade relationship between the two nations. The GSP had previously facilitated up to US$5.6 billion in duty-free exports from India, making it the scheme's primary beneficiary.
Context of Trade Disputes

This action by the US follows a period of increasing trade tensions. India had previously planned to implement retaliatory tariffs as high as 120% on various US products in June of the previous year. This move was a response to the US decision to impose higher tariffs on steel and aluminium imports from India. While India delayed these retaliatory measures amidst ongoing trade talks, the withdrawal of GSP benefits signals a hardening of the US stance.
Broader Trade Relationship

The trade privileges lost by India are part of a larger trade dynamic between the two countries, which saw approximately US$142.1 billion in trade in 2018. Specific sectors are heavily impacted, with India being the largest importer of US almonds, accounting for over half of US almond exports in 2018 with a value of US$543 million. It also ranks as the second-largest buyer of US apples, importing US$156 million worth in 2018. New Delhi's recent policies concerning e-commerce and data localisation have also been points of contention, affecting major US companies.

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What US trade privileges has India lost?

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