India and U.S. to discuss GSP restoration issue to find solution, says Piyush Goyal

India and the U.S. have agreed to discuss New Delhi’s demand for restoration of GSP benefits to domestic exporters and now both sides will commence discussions to find a solution, Commerce and Industry Minister Piyush Goyal said on June 23. The previous Trump administration in the U.S. revoked the Generalized System of Preferences (GSP) from India in 2019. The GSP allows eligible developing countries to export duty-free goods to the U.S.

India and the U.S. have agreed to discuss New Delhi's demand for restoration of GSP benefits to domestic exporters and now both sides will commence discussions to find a solution, Commerce and Industry Minister Piyush Goyal said on June 23.

The previous Trump administration in the U.S. revoked the Generalized System of Preferences (GSP) from India in 2019. The GSP allows eligible developing countries to export duty-free goods to the U.S.

About 1,900 Indian products from sectors such as chemicals and engineering were getting duty-free access to the US market under the GSP, introduced in 1976.

The joint statement issued after the meeting of Prime Minister Narendra Modi and U.S. President Joe Biden in Washington said that India has highlighted its interest in the restoration of its status under the U.S. Generalized System of Preferences programme, which could be considered in relation to eligibility criteria determined by the US Congress.

The leaders supported intensifying the work to advance progress on issues related to the eligibility criteria, it said.

Mr. Goyal said that now it is a matter for both countries to pursue and engage in a dialogue.

But ultimately it’s the US Congress which will have to take a final decision “but discussions will now commence on that issue,” he told reporters in New Delhi.