Thursday, August 10 2006 10:40 Hrs (IST) - World Time -

New Delhi: India yesterday (Aug 9, 2006) said that it did not see the US decision to review the preferential trade benefits that it gives to 133 developing countries linked in any way to stand-off at the WTO.

"It has nothing to do with WTO. It is an independent process," a Commerce Ministry Official told sources, emphasising that the entire Generalised System of Preferences programme of the US, which provides duty free treatment of goods for 3,400 products was scheduled for review.

The review has been necessitated as the entire programme was to come to an end by December 2006 and the renewal of GSP requires Congressional approval.

Last year too the US Trade Representative had reviewed the GSP benefits to 10 developing countries including India and the status quo continued.

The US imported 26.7 billion dollars worth of goods from 133 developing countries under GSP. There was an 18 per cent increase in US imports under GSP in 2005 as compared to the previous year.

The review was independent of the WTO and any GSP beneficiary country whose exports exceeded 0.25 per cent of the global trade in 2005 would have to be taken up for revision.

The countries that come up under this category are India, Argentina, Croatia, Brazil, Indonesia, Kazakhstan, Philippines Romania, Russia, South Africa, Thailand, Turkey and Venezuela.

The GSP was created by the US Congress as part of the Trade Act of 1974 to create economic opportunities in developing countries while expanding the choices of American industry and consumers.