New Delhi :
India on Tuesday downplayed USÂ President DonaldÂ Trump's threat to terminate its preferential trade status, citingÂ New Delhi's alleged failure to assure America that it would provide equitable and reasonable access to its markets in numerous sectors. "Economic value of GSP benefits are very moderate. USA to terminate GSP in 60 days. Our assessment is that this will not have any significant impact on our 5.6 billion dollar exports to the US," ANI quotedÂ Commerce Secretary Anup Wadhawan as saying.
The reaction from the commerce secretary came a day after TrumpÂ informed the US Congress about his intentions to terminate the designation of India and Turkey as a beneficiary developing country under the Generalised System of Preferences (GSP) programme.
"I will continue to assess whether the Government of India is providing equitable and reasonable access to its markets, in accordance with the GSP eligibility criteria," Trump said in his letter to the Speaker of the US House of Representatives, Nancy Pelosi, a copy of which was released to the press.
Wadhawan asserted that all the issues related to trade were being discussed with the US and India will notÂ compromise on the affordability of medical devices.
"Our effort was to balance the affordable prices of the medical devices without compromising on public welfare.Â All the issues in the trade domain are on the table for discussions. We will not compromise on the affordability of medical devices," he said, adding that India has very deep-rooted ties with theÂ US.
Under the United States GSP programme, certain products can enter the US duty-free if the beneficiary developing countries meet the eligibility criteria established by Congress.
The GSP criteria include, among others, respecting arbitral awards in favour of US citizens or corporations, combatting child labour, respecting internationally recognised worker rights, providing adequate and effective intellectual property protection and providing the US with equitable and reasonable market access.