U.S. open to dialogue on GSP, says Pompeo

  1. The US secretary of state has said that the US could discuss its decision to withdraw duty-free benefits to Indian exporters under the generalized system of preferences (GSP) scheme.
  2. GSP is a preferential tariff system extended by developed countries to developing countries.It is a preferential arrangement in the sense that it allows concessional low/zero tariff imports from developing countries.
  3. The US has terminated India’s designation as a beneficiary under GSP highlighting concerns over India not allowing equitable and reasonable access to its markets.
  4. The US and India is also expected to discuss India’s data localisation rules which had forced foreign companies to store their data locally.
  5. The US will also discuss with India the 5G network technology issue where US has been insisting countries to block access to the Chinese telecom giant Huawei to their next generation(5G) telecommunication networking markets.

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