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US ends India’s preferential trade status; India calls it ‘unfortunate’

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[vc_row][vc_column][vc_column_text]India has called ‘unfortunate’ US decision to terminate its preferential trade treatment under the Generalised System of Preference (GSP) after several rounds of negotiations failed to resolve differences to mutual satisfaction.

The Generalized System of Preference (GSP) is the largest and oldest US trade preference programme designed to promote economic development by allowing duty-free entry for thousands of products from designated beneficiary countries.

US President Donald Trump yesterday (Friday, May 31) terminated India’s designation as a beneficiary developing nation under the key GSP trade programme after determining that it had not assured the US that it will provide “equitable and reasonable access to its markets.”

“I have determined that India has not assured the US that it will provide equitable and reasonable access to its markets. Accordingly, it is appropriate to terminate India’s designation as a beneficiary developing country effective June 5, 2019,” Trump said in a proclamation on Friday ignoring the plea made by several top American lawmakersas it will cost American businesses over $300 million in additional tariffs every year.

India’s Ministry of Commerce today said India had offered several resolutions, which, however, “didn’t find any acceptance by the US”. In a statement, the Ministry of Commerce said, “India, as part of our bilateral trade relations, had offered resolution on significant US requests to find a mutually acceptable way forward. Unfortunate that this didn’t find acceptance by the US.”

India also expressed hope that the issue was a “part of a regular process” which “gets resolved mutually from time to time”.

“In any relationship, particularly in the area of economic ties, there are issues which get resolved mutually from time to time. We view this issue as a part of a regular process and will continue to build on our strong ties with the US, both economic and people to people,” the statement said.

On March 4, Trump announced that the US intends to terminate India’s designations as a beneficiary developing country under the GSP programme. The 60-day notice period ended on May 3.

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 $5.7 billion in imports to the US given duty-free status and Turkey the fifth largest with $1.7 billion in covered imports, according to a Congressional Research Service report issued in January.

The GSP criteria includes, among others, respecting arbitral awards in favour of the US citizens or corporations, combating 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 programme depending on factors related to economic development.[/vc_column_text][/vc_column][/vc_row]

Latest world news

PM Modi arrives in France for G7 Summit 2026, Trump meeting scheduled on Wednesday

Prime Minister Narendra Modi has arrived in France for the G7 Summit 2026. A bilateral meeting with US President Donald Trump is expected during the summit as leaders discuss major global economic and security challenges.

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Prime Minister Narendra Modi arrived in Évian, France, on Tuesday to participate in the G7 Summit 2026, marking the final leg of his two-nation Europe visit. World leaders have gathered in the French town for discussions on major global challenges, including economic growth, security, technology and international cooperation.

The summit comes at a time of heightened geopolitical tensions, with developments related to Iran, Ukraine and global economic stability expected to feature prominently in discussions among leaders.

A bilateral meeting between PM Modi and US President Donald Trump is expected on Wednesday on the sidelines of the summit. According to reports, the two leaders are likely to discuss trade, investment, energy cooperation, supply chains, artificial intelligence and broader strategic issues.

Ahead of the summit, PM Modi had said India would represent not only its own interests but also the aspirations of the Global South. India has consistently used international forums to raise issues affecting developing nations, including sustainable development, economic resilience and equitable global growth.

French President Emmanuel Macron is hosting the three-day summit in Évian, where leaders from G7 nations and invited partner countries are taking part in a series of formal sessions and bilateral engagements. India is among the invited outreach partners attending the gathering.

The expected Modi-Trump meeting is attracting significant attention as it would be their first face-to-face interaction since recent discussions over trade and strategic cooperation. Officials have indicated that economic ties, visa-related matters and regional security issues could feature in the talks.

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Trump says Iran agrees to never have nuclear weapons, rejects $300 billion fund claim

Donald Trump said Iran has agreed to never possess nuclear weapons under a proposed framework, while dismissing reports that the US would provide Tehran with a $300 billion reconstruction fund.

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Donald Trump statement

US President Donald Trump has said that Iran has agreed to a commitment that it will never develop or possess nuclear weapons, describing it as a central element of a proposed understanding between Washington and Tehran.

Speaking about the ongoing diplomatic efforts, Trump also rejected reports suggesting that the United States planned to provide Iran with a reconstruction or investment package worth $300 billion. He described such claims as false and said no such arrangement had been agreed.

The remarks come as discussions continue over a broader framework aimed at easing tensions between the two countries. According to Trump, the understanding would ensure that Iran remains without nuclear weapons while opening the door for future engagement if the terms are respected.

Questions remain over final agreement details

Despite Trump’s comments, several aspects of the proposed arrangement remain unclear because the full text of the agreement has not yet been made public.

Reports indicate that negotiations have involved discussions on sanctions relief, access to frozen assets and potential economic measures linked to Iran’s compliance with future commitments. However, the exact scope of these provisions has not been officially confirmed.

Another key issue is how compliance would be monitored. Details regarding inspections, verification mechanisms and the handling of Iran’s existing nuclear materials have yet to be fully explained.

Further negotiations expected

Officials have suggested that discussions on technical nuclear matters could continue even after the signing of an initial memorandum of understanding. Such talks would likely focus on implementation and verification measures.

The proposed framework is being closely watched internationally, as any agreement between the United States and Iran could have significant implications for regional stability and global non-proliferation efforts.

For now, Trump has maintained that the core objective remains clear: ensuring that Iran never acquires a nuclear weapon while denying reports that Washington has committed to a multibillion-dollar reconstruction fund.

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LATEST SPORTS NEWS

USA start FIFA World Cup 2026 with dominant 4-1 victory over Paraguay

The USA opened their FIFA World Cup 2026 journey with a dominant 4-1 victory against Paraguay, earning three valuable points in Group D.

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The United States kicked off their FIFA World Cup 2026 campaign in impressive fashion, securing a commanding 4-1 victory over Paraguay in their Group D opener at SoFi Stadium in Los Angeles.

Playing in front of a passionate home crowd, the hosts delivered an attacking display to collect all three points and make an early statement in the tournament. The match also marked a significant occasion as the USA hosted part of the World Cup opening festivities before turning attention to the action on the pitch.

The Americans took control early and maintained pressure on Paraguay throughout the contest. Their attacking movement and clinical finishing helped them establish a comfortable lead, while Paraguay struggled to contain the hosts’ pace and creativity in the final third.

USA seize control after fast start

The United States settled quickly and found success going forward, creating several opportunities through quick passing and aggressive pressing. Their attacking approach paid off as they built momentum and gradually stretched Paraguay’s defence.

Paraguay attempted to respond and managed to get on the scoresheet, but the South American side found it difficult to match the intensity shown by the hosts. The USA continued to create chances and added further goals to put the result beyond doubt.

With the victory, the United States moved to the top section of Group D and gained an important boost in confidence ahead of their upcoming fixtures in the tournament.

Strong opening result for hosts

A winning start is particularly important in a World Cup campaign, and the USA achieved exactly that with a comprehensive performance. The result gives the hosts valuable momentum as they prepare for the next stage of group play.

For Paraguay, the defeat means they will need a strong response in their remaining group matches to keep their hopes of progressing to the knockout rounds alive.

The FIFA World Cup 2026 is being jointly hosted by the United States, Canada and Mexico, with the tournament featuring an expanded format and more participating teams than previous editions.

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