- The US State Department has reacted to India’s announcement of retaliatory tariffs on certain U.S. imports by reiterating U.S. President message of reciprocal trade and the strength of U.S.-India ties.
- Recently,the United States Trade Representative(USTR) had said that there will be not be a trade action against India but US will continue to raise market access concerns with India.
- Further,U.S Secretary of State is expected to visit India next week for discussions prior to the G20 meeting in Osaka,Japan.
- The discussions could take place on (a)US decision to withdraw generalized system of preferences(GSP) scheme (b)5G network infrastructure and (c)data localisation.
- GSP is a preferential tariff system extended by developed countries to developing countries.It is a preferential arrangement in the sense that it allows concessional low/zero tariff imports from developing countries.
- The US has terminated India’s designation as a beneficiary under GSP highlighting concerns over India not allowing equitable and reasonable access to its markets.
- The US and India is also expected to discuss India’s data localisation rules which had forced foreign companies to store their data locally.
- Further,US will also discuss with India the 5G network technology issue where US has been insisting countries to block access to the Chinese telecom giant Huawei to their next generation(5G) telecommunication networking markets.
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