In a major setback to Modi led BJP government in centre US ends preferential trade privileges with India
Washington’s decision pose major challenge for new commerce and industry minister Piyush Goyal who took charge of the ministry Friday afternoon.
On Friday US formally terminated India’s eligibility for a duty-free import scheme for developing countries.
It said India has not given assurances it “will provide equitable and reasonable access to its markets” to US companies as required under relevant American trade laws.
India has described as ‘unfortunate’ the United States’ decision to terminate India’s designation as a beneficiary developing country.
“India had offered resolution on significant US requests to find a mutually acceptable way forward. Unfortunate that this didn’t find acceptance by US,” the commerce ministry said in a statement.
Opposition Party Congress described the American decision as a double whammy for India.
“Withdrawal by US of the special trade status is a double whammy. India has decided to yield to the pressure of the US and stop purchasing crude oil from Iran.
Now our special trade status with the US is gone,” Congress spokesperson Randeep Singh Surjewala said at a press conference.