India officially removed from GSP

India removed from GSP

In early March 2019, President Trump announced the United States’ intent to terminate India’s (along with Turkey’s) designation as a beneficiary developing country under the Generalized System of Preferences (GSP) program.  According to Hindu Business Online, President Trump said, “I have determined that India has not assured the U.S. that it will provide equitable and reasonable access to its markets. Accordingly, it is appropriate to terminate India’s designation as a beneficiary developing country effective June 5, 2019.”


The U.S. Generalized System of Preferences (GSP), a program designed to promote economic growth in the developing world, provides preferential duty-free treatment for over 3,500 products from a wide range of designated beneficiary countries (BDCs), including many least-developed beneficiary developing countries (LDBDCs).  As of March 2017, there were 120 BDCs, including 44 LDBDCs. See General Note 4 of the U.S. Harmonized Tariff Schedule for the most up-to-date number of GSP beneficiaries. An additional 1,500 products are GSP-eligible only when imported from LDBDCs. The GSP program was instituted on January 1, 1976, and authorized under the Trade Act of 1974 (19 USC 2461 et seq.). The program’s last authorization expired on December 31, 2017. The signed Bill will extend the program through December 31, 2020, and retroactively extend benefits to covered imports that have been made since the program lapsed.