US President Donald Trump has expressed his intention to end the preferential trade treatment to India.
This special consideration under the US Generalized System of Preferences program allows a duty-free entry for Indian goods worth $5.6 billion. The US president, however, feels that India is not reciprocating in the same manner.
“India has not assured the United States that it will provide equitable and reasonable access to the markets of India,” Donald Trump informed the Congress on Monday.
According to US Trade Representatives Office, the US trade deficit with India amounted $27.3 billion in 2017, sources have said.
The decision to end the preferential treatment is linked to the recently unveiled new e-commerce rules by the Indian government which hurt e-commerce majors like Amazon and Flipkart.
The decision would take at least 60 days to take effect on the ground, according to reports.