Donald Trump plans to end India's preferential trade treatment

Agencies
March 5, 2019

Washington, Mar 5: US President Donald Trump said on Monday he intends to end India's preferential trade treatment under a programme that allows $5.6 billion worth of Indian exports to enter the United States duty free.

Trump, who has vowed to reduce US trade deficits, has repeatedly called out India for its high tariffs.

"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.

In a separate letter, Trump also informed the Congress of his intent to terminate the GSP beneficiary designation of Turkey. This was primarily because the economy of Turkey had improved a lot in the last four-and-a-half decades, he said.

"In the four-and-a-half decades since Turkey's designation as a GSP beneficiary developing country, Turkey's economy has grown and diversified," he said.

The US Trade Representative's Office said removing India from the Generalized System of Preferences (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 US goods and services trade deficit with India was $27.3 billion in 2017, according to the US Trade Representative's Office.

India is the world's largest beneficiary of the GSP programme and ending its participation would be the strongest punitive action against India since Trump took office in 2017.

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.

The e-commerce rules followed a drive by New Delhi to force global card payments companies such as Mastercard Inc and Visa Inc to move their data to India and the imposition of higher tariffs on electronic products and smartphones.

Trump's letter to congressional leaders could be seen as a major setback in India-US bilateral relationship, in particular in the arena of trade and economy.

Under the United States GSP programmeme, 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.

Countries can also be graduated from the GSP programmeme, depending on factors related to economic development.

The Trump administration had launched an eligibility review of India's compliance with the GSP market access criterion in April 2018.

"India has implemented a wide array of trade barriers that create serious negative effects on United States commerce. Despite intensive engagement, India has failed to take the necessary steps to meet the GSP criterion," the the US Trade Representative (USTR) said.

The US had designated Turkey as a GSP beneficiary developing country in 1975. An increase in the Gross National Income (GNI) per capita, declining poverty rates and export diversification by trading partner and by sector were evidence of Turkey's higher level of economic development, the USTR said.

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Source: Arab News
September 15,2024

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London: There will be no normalization of ties between Saudi Arabia and Israel until an independent Palestinian state is established, Prince Turki Al-Faisal, the former head of the Kingdom’s intelligence services, has warned. 

During a talk at London-based think tank Chatham House, the former Saudi ambassador to the US also discussed Washington’s role in the peace process as the Gaza war approaches its first anniversary, and how talks before the outbreak of hostilities had been broadly positive.

He said the US is keen on the resumption of talks between Israel and Saudi Arabia to strengthen regional security and to forge economic ties, but Riyadh’s position is that “if there’s a Palestinian state that Israel accepts to come (into) existence, then we can talk about normalization with Israel.”

The prince added: “Before Oct. 7 … talks not only progressed along those lines, but also the Kingdom invited a Palestinian delegation to come and talk directly to the Americans about what it is that might bring about a Palestinian state.

“I’m not privy to those talks so I don’t know what happened between the Palestinians and the Americans, but the Kingdom’s position has always been we won’t speak for the Palestinians. They have to do it for themselves. Unfortunately, of course, the Oct. 7 (Hamas attack against Israel) put an end to those talks.”

Prince Turki said the establishment of a Palestinian state is not only crucial for Israeli ties with Saudi Arabia but with the rest of the Muslim world as well.

“A Palestinian state is a primary condition for Saudi Arabia to have normalization with Israel, but … on the Israeli side, the whole government is saying no Palestinian state,” he added.

Prince Turki said for Saudi Arabia, an independent Palestine would encapsulate the 1967 borders, including East Jerusalem.

He added that the Kingdom has led the way in trying to achieve a peaceful resolution to the conflict, citing the 1981 King Fahd Peace Plan and the 2002 Arab Peace Initiative proposed by King Abdullah.

During the current Gaza war, “the Kingdom led the Muslim world, and not only summits with the Arabs but with the (rest of the) Muslim world, and also … the diplomatic missions that have been taking place to convince the world that there must be an end to the fighting, led by the Saudi foreign minister,” Prince Turki said.

“The Kingdom has been in the forefront of condemning the Israeli onslaught on the Palestinians, not just in Gaza but equally in the West Bank.”

He criticized the US and other Western nations for not applying more pressure on Israel to end the war, citing how the UK had only recently begun to suspend certain arms export licenses to Israel following the election of a new government in July.

“I’d like to see more done by the UK,” he said. “I think, for example, the UK … should recognize the state of Palestine. It’s long overdue.”

Prince Turki said the US could apply direct pressure on Israeli Prime Minister Benjamin Netanyahu over the actions of his government and military, and should address funding and lobbying by groups and individuals sympathetic to Israel.

“I think the US has enormous tools to affect Israel which it isn’t using, not just simply … denial of supply of weapons and material to the Israelis,” the prince added.

“A lot of financial help goes to Israel from the US. If some of the privileges that (the) Israeli lobby, for example, in America, enjoys — of tax-free contributions to Israel — can be withdrawn from those Israeli lobbyists, that will (put) great pressure on Israel.”

In the US, “you have to register as a lobbyist for a specific country, or be prosecuted, if you want to talk for that country, but a lot of organizations in America do that for Israel and still enjoy a tax-free status because they’re considered not representing Israel per se, but simply as philanthropic or humanitarian groupings,” he said.

“There are many tools that are available to the US, not simply harsh talk, which seems to have gotten us nowhere. But is America ready to do that? As I said, I’m not too optimistic about that.”

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News Network
September 13,2024

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NRI professionals hailing from the coastal and Malnad regions of Karnataka, now based in Singapore, Indonesia, Malaysia, Hong Kong, and Australia, have been urging the Indian government and airlines to introduce a direct flight between Mangalore International Airport (MIA) and Singapore’s Changi Airport.

These professionals argue that Singapore’s strategic location as a hub connecting India with East Asia makes this flight essential. They highlight that this route would serve over 12 million people from the coastal and hill regions of southern India, fostering stronger ties with East Asian economies.

The group, consisting of individuals from Dakshina Kannada, Uttara Kannada, Udupi, Chikkamagaluru, Kodagu, Shivamogga, and Hassan, is spearheaded by Rajesh H Acharya, director of HQ Connections Pte Ltd, Singapore, and coordinator of the Singapore Tuluver community. Acharya emphasized the significance of the Indian government’s Act East policy, which aims to strengthen relationships between India and ASEAN, East Asia, and the Asia-Pacific region.

“This flight will open new doors for cultural, trade, tourism, and technological exchanges between these regions,” Acharya said.

The Mangalore Chapter of IndUS Entrepreneurs (TiE) has also proposed positioning the region as the 'Silicon Beach of India.' A direct flight would provide greater opportunities for entrepreneurs and investors from both Singapore and Mangaluru, boosting business exchanges.

Moreover, Singapore’s Changi Airport could see increased tourism from the Karnataka coast, while Coastal Karnataka would benefit from a surge in visitors from ASEAN countries, the Far East, Australia, New Zealand, and the US West Coast.

While a similar attempt in 2017 did not succeed, Acharya and his team are hopeful that this time their appeal will be taken seriously, tapping into the immense growth potential of the eastern half of the globe.

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News Network
September 12,2024

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Prime Minister Narendra Modi's visit to CJI D Y Chandrachud's house for Ganesha puja celebrations has raised doubts in the mind of Shiv Sena (UBT) leader Sanjay Raut, who questioned whether he would deliver 'justice' in the ongoing case the party has in the Supreme Court, given that the PM is the other party in the case.

Speaking to ANI, Raut said "Ganpathi festival is going on, people visit each other's houses. I don't have info regarding how many houses PM visited so far...but PM went to CJI's house and they together performed 'Aarti'."

He said that a custodian of the Constitution meeting politicians could raise doubts in the minds of people.

"In our case, other party is the central govt...Chief Justice should distance himself from this case because his relation with the other party in the case is openly visible," Raut continued.

He also raised questions if the CJI be able to give them justice in the case. "We are getting dates after dates and an illegal govt is going on...Shiv Sena and NCP were broken in such a way...we are not getting justice and PM Modi is taking a lot of interest in the illegal govt of Maharashtra, to save them," the Sena (UBT) leader continued.

Raut alleged that a doubt had been formed in Maharashtra's mind given the 'bond' the PM and the CJI seem to share.

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