India to Lose GSP Status with USA on June 5, 2019

On May 31, 2019, President Trump announced that India would lose its Generalized System of Preferences (GSP) status effective June 5, 2019. India’s GSP status is being revoked because President Trump feels that India is not providing the U.S. “equitable and reasonable access to its markets.” India’s loss of GSP status follows Turkey’s, and comes on the heels of a 2018 U.S. investigation into the trade and fairness practices of several GSP-eligible governments. India’s GSP status provided preferential treatment to nearly $5.6 billion worth of Indian exports to USA; the revocation of India’s GSP status means that U.S. companies importing from India will now pay in excess of $300 million in additional duties per year.