India could lose duty-free access to American market Thursday, December 21, 2006 01:51 [IST]
Washington: The United
States Trade Representative has identified six countries, including India, which
could lose duty-free access to the American market in 2007 under a revamped
trade programe signed into law by President George W Bush.
Brazil, India and Venezuela
along with Thailand, the Philippines and the Ivory Coast could lose trade
benefits because of recent changes Congress made to the US Generalized System of
Preferences (GSP) program for developing countries, the chief American trade
negotiator said.
Under the current revamped GSP programme, the administration can revoke waivers
when one of two conditions have been met:import of a certain good from one country
exceed an annual cap of about $187.5 million, or comprise 75 per cent of total
U.S. Imports of that good.
According to USTR statistics, a preliminary assessment shows that India
would lose duty-free access for gold jewellery and brass lamps. The country
shipped $1.6 billion in gold jewellery and $20 million in brass lamps to the United States
under the GSP program in the first 10 months of 2006.
And Brazil stands to lose
duty free access for brake and brake parts, which totalled $242 million in
January through October, and for ferrozirconium, which totalled $700,000; and Thailand also would lose duty-free access for
gold jewellery, of which it shipped $611 million to the United States in first ten months
of 2006.
Bush signed the legislation that continued the Generalized System of
Preferences (GSP) program for two years until December 31, 2008.
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