US President Donald Trump on Monday intends to end the preferential trade treatment under the program that allows India a duty free trade in US worth $5.6 billion.
US always asked India to reduce its high tariff on export trade goods to US.
“I am taking this step because, after intensive engagement between the United States and the Government of India, I have determined that India has not assured the United States that it will provide equitable and reasonable access to the markets of India,” Trump said in a letter to congressional leaders.
The new decision by Trump will remove the Generalised System of Preferences(GSP) from India.
US-India trade ties were hurt after India unveiled new rules on e-commerce that restrict the way Amazon.com Inc and Walmart Inc-backed Flipkart do business.