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US lawmakers urge Trump administration to reinstate trade concessions to India

Indian Prime Minister Narendra Modi (L) and US President Donald Trump speak during a bilateral meeting in Biarritz, France, on the sidelines of the G7 Summit on August 25, 2019. (AFP photo)

A bipartisan group of US lawmakers have urged the administration of President Donald Trump to reinstate trade concessions to India, saying the withdrawal of the privilege had led to retaliatory tariffs from New Delhi which were hurting American exporters.

In a letter addressed to US Trade Representative Robert Lighthizer, 44 members of Congress said many US jobs depend on the trade between India and the United States.

In June, the Trump administration ended US preferential trade treatment for India, removing it from the Generalized System of Preferences (GSP) program that allowed duty-free entry for up to $5.6 billion worth of its annual exports to the US.

The elimination of GSP brought higher retaliatory tariffs from New Delhi on 28 American products including almonds, apples and walnuts.

India is one of the largest importers of US agricultural products, according to US Department of Agriculture. The South Asian country purchased $543 million worth of almonds and $156 million worth of apples from the US in 2018.

“Just as US industries are harmed by lack of fair and reciprocal access to India’s market, American companies and workers also are harmed by new tariffs due to the GSP termination,” the US lawmakers said in the letter seen by Reuters.

The letter comes days ahead of a meeting between Trump and Indian Prime Minister Narendra Modi.

Trump will travel to Houston, Texas, on September 22 to participate in an event with Modi and to “discuss ways to deepen their energy and trade relationship.”

The Trump administration is racing to announce limited trade deals with India and Japan before the end of the month, as Trump tries to overcome concerns about his protracted trade war with China.

The war escalated dramatically last month, when Trump announced new tariffs on Chinese goods from September 1. After Beijing hit back with retaliatory tariffs, Trump said existing levies would also be raised in coming months, in October and December.


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