India seeks US GSP.

Indian Commerce Minister Anand Sharma, during his recent visit to US, has already pushed Washington to continue with GSP benefits to India amid rising chorus in the US that India should no longer get these benefits.

The GSP system seeks to promote economic growth in the developing world by providing preferential duty-free entry for up to 5,000 products.

Among developing countries, India was the top GSP-beneficiary in 2011 with $3.7 billion in imports entering the US duty free.

Anand Sharma highlighted its significance for the labour intensive small and medium enterprises mostly employing women in India.

Exports from US saw a 4% growth in the last fiscal, to stand at $36 billion, that is 12% of the country's total exports in that period.

Pending renewal of the GSP programme, all products shall be exposed to the Full Rate of Import Custom Duties, against a 5-6.5% advantage exporters are getting now under the GSP.

The increased cost of imports will make products of Indian origin expensive and highly uncompetitive in the US market and this will be a major setback to all the Indian exporters, said Sanjay Budhia, chairman of the CIIs national committee on exports.

The Indian effort to secure a renewal of GSP benefits in US comes at a time when Bangladesh is trying to revive it and have it extended to its main export, that of ready-made garments.

The US revoked the GSP benefits for Bangladesh products to push Dhaka adopt more labour friendly policies and improve working conditions and workplace security in its industry.

Bangladesh is seeking a revival of the US GSP for all its products including the main export, ready-made garments, which were not covered by the GSP so far.

Indian products that compete with those from Bangladesh for a share of the US market will have an edge if US renews the GSP for India and denies it to Bangladesh, says industry sources.

Source : bdnews24.com