The Donald Trump administration's decision to end the preferential trade benefits enjoyed by India will have larger ramifications, according to Raj Bhala.
The move, the professor at the University of Kansas School of Law said in an interaction with BloombergQuint, signifies a change in tone of India-U.S. trade relations. “For the first time, U.S. is using the Generalized System of Preferences as leverage to try and compel its reforms in the dairy sector, medical devices and e-commerce rules.”
The Donald Trump administration informed the Congress recently that it wants to scrap trade concessions for India, Bloomberg News reported. That's expected to affect over $5 billion worth of goods. “However, it shouldn't come as a surprise to the Modi administration as it's been under review since April 2018.”
Key Highlights Of The Interview:
- U.S. has made clear its concerns about India's e-commerce rules and data localisation requirements.
- President Trump stressed countries were long taking advantage of U.S. since his State of the Union address last month.
- Indian trade negotiators would look at the new NAFTA, TPP and other trade deals for specific provisions for access to markets for dairy and medical devices.
Watch the full interaction here:
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