Indo-US
trade ties affected?
United States President Donald Trump intends
to end the preferential trade terms for India under the U.S.’s Generalized System of Preferences (GSP) program. U.S.
move to end preferential trade terms will have minimal impact, says India.
Trump is taking this step because after
intensive engagement between the United States and the Government of India, he
has determined that India has not assured the United States that it will
provide equitable and reasonable access to the markets of India. India’s new
e-commerce rules, price controls on medical devices and tariffs on ICT
(information and communications technology) products are among the issues that
have caused trade frictions between the two countries.
US is a big trade partner. It faces increasing
trade deficit with China also. Trump and Modi are equally obstinate persons. This
might affect Modi’s election prospects in 2019 general election too, likely.
Actually this is the socialist Nehruvian policy of high import tax which is to
be blamed, hope we throw it out now at least and find alternative sources of
income for the govt.
Trump’s action is not disappointing. The very
purpose of world trade is being defeated by Country like America by imposing
restriction on Developing Countries and if that developing country reacts,
America withdraws preferential trade treatment etc. India should see the
viability of its exports to other countries in Rupee payment.
Some call this a valid move as India does not
allow anybody access to the market without Government patronage as it is a
Command rather than Free Market economy. Within India, a “Command Economy”
prevails which benefits Government and employment of armies of corrupt,
incompetent, unproductive extortionists on Government payroll at the cost of
competence, integrity, the produce of quality goods and services at competitive
prices, the Non Governmental Citizen and
the Country's international trade advantage:
GSP is for poor countries. For sure not
countries which are fast outpacing the countries in the leader board. The
Americans certainly do not want to help a country which will be beating it in
this century. One cannot blame them. When you need to get to the top the last
few steps where you outphase the leaders. They certainly will not help you to
beat them.
U.S. is doing what is right for its citizens.
Why crib about it? Find ways to increase a niche market by innovation wherein
the products of India are the only ones available and sell them to multiple
markets, and keep the tariffs of other products competitive and yet in such a
way there is no dumping.
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