‘US may take final decision on GSP issue after formation of new govt’

The US has indicated that it may take final decision on withdrawal of incentives to Indian exporters under its Generalized System of Preferences (GSP) programme only after formation of the new government here, sources said.

In March, the US Trade Representative’s Office has said that removing India from the GSP programme would not take effect for at least 60 days after notifications to Congress and the Indian government, and it will be enacted by a presidential proclamation.

The sources said in a meeting, the US has signalled that they would like to wait on the GSP issue till the new government assumes office in India.

Although India has stated that withdrawal of these duty benefits under GSP will not impact its exports to the US, small exporters have asked for continuation of the programme.