Why did the US withdraw India from the GSP program?

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The US Withdrew India from the GSP Program Due to a Lack of Reciprocal Market Access

The United States withdrew India from its Generalised System of Preferences (GSP) program, citing insufficient reciprocal access to Indian markets. This decision by the Trump administration followed two years of trade negotiations between the two nations. The GSP program typically allows developing countries to export goods to the US with reduced or zero tariffs.
Concerns Over Market Access

The primary justification provided for India's removal from the GSP was the perceived lack of equivalent market opening by India for American goods and services. Negotiations between the two countries have been ongoing, with the US seeking greater access to Indian markets. This issue of reciprocal access has been a central point of contention in the trade discussions.
Ongoing Trade Negotiations

Despite the GSP withdrawal, India and the United States are reportedly nearing a comprehensive trade deal. Indian Commerce Minister Piyush Goyal indicated that a trade agreement is close to finalisation, aiming to resolve several long-standing issues. The proposed pact seeks to restore zero-tariff status for certain Indian exports to the US under the GSP framework.
Potential Components of a Deal

As part of the ongoing negotiations, India is looking for concessions on its generic drug exports to the US. In return, India is considering opening its dairy markets and reducing tariffs on agricultural products. This exchange of concessions is a key element in the efforts to secure a new trade accord between the two nations.

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Why did the US withdraw India from the GSP program?

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