44 lawmakers urge Trump admin to reinstate GSP for India
Washington, Sept 18: A bipartisan group of 44 influential lawmakers has urged the Trump administration to reinstate India's designation as a beneficiary developing nation under the key GSP trade programme as part of a potential trade deal between the two countries.
The Trump administration terminated India's designation as a beneficiary developing nation under the Generalized System of Preferences (GSP) in June.
The GSP is the largest and oldest US trade preference programme and is designed to promote economic development by allowing duty-free entry for thousands of products from designated beneficiary countries.
In a letter to US Trade Representative Robert Lighthizer, the House members suggest an "early harvest" approach that "would ensure that long-sought market access gains for US industries are not held up by negotiations over remaining issues".
US President Donald Trump and Prime Minister Narendra Modi will meet on September 22 in Houston and the two sides hope to announce a potential deal on longstanding trade issues, including GSP, a media report said.
Led by Congressmen Jim Himes and Ron Estes, the letter to Lighthizer has been signed by 26 Democrats and 18 Republicans, showing the strong, bipartisan support for reinstating GSP benefits for imports from India.
"Companies are telling Congress about the American costs - both in dollars and jobs - of lost GSP eligibility for India," said Dan Anthony, executive director of the Coalition for GSP on Tuesday.
"The letter shows Congress' strong, bipartisan support for swift action to reinstate GSP for India and to help constituents that depend on two-way trade," he said.
While GSP often is seen as a benefit to foreign countries, it is American businesses and workers that have suffered most from its termination to date.
Despite facing higher tariffs due to lost GSP, imports from India of (previously) GSP-eligible products increased over 40 per cent in June/July 2019 compared to a year earlier, likely the result of companies shifting sourcing away from China, Coalition for GSP said in a statement.
"Indian exporters are thriving while American companies are stuck paying USD 1 million a day in new tariffs," said Anthony.
The letter notes that costs of GSP termination "are real for our constituents and growing every day". The Coalition for GSP's latest data shows that loss of GSP for India cost American companies about USD 30 million in July.
In the letter, the lawmakers said that they have a strong desire to see GSP eligibility for India reinstated.
"Should there be progress in negotiations, we hope you will use the tools provided by the GSP statute as warranted, such as partial reinstatement," the letter said.
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 GSP termination, the lawmakers wrote.
"The costs are real for our constituents and growing every day. We urge you to continue negotiations and consider an early harvest to help American jobs that depend on two-way trade between the United States and India," they said.
Observing that the United states has legitimate concerns against India, the lawmakers wrote those policies negatively affect US companies trying to access its market, including a number of longstanding issues that have been subject to intergovernmental talks for years.
"As you know, several US industries filed petitions under GSP's market access criterion, which were accepted for review in April 2018. Ultimately, failure to make sufficient progress on the issues led to termination of India's GSP eligibility on June 5, 2019," they said.
The Congressmen said that they take these complaints seriously and share the administration's strong desire to see them resolved.
"We are encouraged to see continued engagement between the administration and the newly elected Government of India that assumed office in late May, including visits by senior USTR and Indian officials over the summer.
"The change in government provides a fresh opportunity to address outstanding concerns, and we hope that new Indian officials will offer concrete solutions that improve market access for American companies and workers," the Congressmen wrote in the letter.
Under the GSP programme, nearly 2,000 products including auto components and textile materials can enter the US duty-free if the beneficiary developing countries meet the eligibility criteria established by Congress.
India was the largest beneficiary of the programme in 2017 with USD 5.7 billion in imports to the US given duty-free status and Turkey the fifth largest with USD 1.7 billion in covered imports, according to a Congressional Research Service report issued in January.
The Trump administration had launched an eligibility review of India's compliance with the GSP market access criterion in April 2018.
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Ban on outsiders' entry extended in Sambhal, SP MPs barred from entering
Lucknow/Sambhal (UP) (PTI): Three Samajwadi Party parliamentarians, including its Sambhal MP, were stopped from entering the violence-hit district, as the administration on Saturday extended the ban on the entry of outsiders into Sambhal to December 10 to maintain "peace and order".
The administration's earlier ban on the entry of outsiders was to expire on Saturday.
The Samajwadi Party's Muzaffarnagar MP Harendra Malik, accompanied by its Kairana and Sambhal MPs, was stopped from entering Sambhal from Ghaziabad.
"I don't understand why we are being stopped. Are the opposition leader and the MPs so irresponsible that they can't be allowed to move within the state?" Malik said.
The party had earlier announced a 15-member delegation would visit the district to gather information about the violence that broke out over a court-ordered survey of the Shahi Jama Masjid.
Curbs under Section 163 (power to issue order in urgent cases of nuisance or apprehended danger) of the Bharatiya Nagrik Suraksha Sanhita, set to expire on Sunday, were extended to December 31.
In a statement issued in Sambhal, District Magistrate Rajendra Pensiya said, "To maintain peace and order, the imposition of Section 163 of the Bharatiya Nagrik Suraksha Sanhita in the district has been extended to December 31."
"No outsider, any social organisation or public representative can enter into the borders of the district without seeking the permission of the competent authority till December 10," he added.
Tension had been brewing in Sambhal since November 19 when the court-ordered survey of the Mughal-era mosque was carried out following claims that a Harihar temple previously stood at the site.
Violence erupted during a second survey on November 24 as protesters gathered near the mosque and clashed with security personnel, leading to stone pelting and arson. Four people died and several others were injured in the clashes. The police have denied allegations that it fired at the protesters.
The Supreme Court has since ordered the Sambhal trial court to halt proceedings in the case and its survey.
Pensiya further said, "If anyone tries to spread rumours on any group on social media, the group admin will delete the post and immediately inform the police. Cyber cafes will keep a register to enter the names of visitors. No person in Sambhal will burn effigies at public places."
Malik, who was stopped from entering Sambhal, further said, "Our delegation also included MPs Zia-ur-Rehman Barq (Sambhal) and Iqra Hasan (Kairana). What can we do? The government is acting in an autocratic manner."
Sambhal MP Barq has been booked in connection with the November 24 violence for "provocative acts".
In Moradabad, Samajwadi Party MP Ruchi Veera's residence was surrounded by cops to prevent her from travelling to Sambhal.
Leader of Opposition in the Uttar Pradesh Assembly Mata Prasad Pandey, who was to lead the delegation, told reporters outside his Lucknow residence that Home Secretary Sanjay Prasad called him and requested him to not visit Sambhal.
Pandey is sitting on a dharna in Lucknow.
"The Sambhal district magistrate also called and told me that the ban on the entry of outsiders had been extended. I will now visit the party office and discuss the issue before deciding on our next action," he said.
"The government perhaps wanted to prevent me in order to hide its wrongdoings in Sambhal as our visit would have exposed its mistakes," he added.
Heavy security has been deployed outside Pandey's residence since Friday.
The Samajwadi Party had postponed an earlier visit after assurances from the director general of police about a fair investigation into the violence.
Congress state chief Ajay Rai earlier told PTI that a party delegation would visit Sambhal on December 2.
