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US to end preferential treatment terms to India in trade, India not to retaliate

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US to end preferential treatment terms to India in trade, India not to retaliate

[vc_row][vc_column][vc_column_text]In a move seen as a major setback to India-US bilateral relations in trade and economy, US President Donald Trump on Monday, March 4, told the US Congress he intended to terminate the designation of India and Turkey as beneficiary developing countries under the Generalised System of Preferences (GSP) programme.

The program, which sets zero tariffs for certain goods from a set of 120 developing countries in order to foster trade and economic development, accounts for some $5.6 billion of India’s exports to the US, making India the largest GSP beneficiary. Exports to the US from India under GSP — at $5.58 billion — were over 12 per cent of India’s total goods exports of $45.2 billion to the US.

The GSP programme allows duty-free entry of 1,784 products from India into the US, benefitting exporters of textiles, engineering, gems and jewellery and chemical products, said a media report.

In a letter to the Speaker of the US House of Representatives, Nancy Pelosi, Trump said that New Delhi had “not assured” the United States that it would “provide equitable and reasonable access” to the markets of India.

“I am taking this step because, after intensive engagement between the United States and the Government of India, I have determined that India has not assured the United States that it will provide equitable and reasonable access to the markets of India…” Trump said in a letter to the Speaker of the House of Representatives and President of the Senate, shared with reporters.

A mandatory 60 days must now pass after notice has been given to the beneficiary countries and to Congress, during which time there is, technically speaking, the possibility of negotiation. After the 60-day period, a beneficiary country can be taken off the GSP list by a presidential proclamation.

While Trump said in his letter that he “will continue to assess whether the Government of India is providing equitable and reasonable access to its markets, in accordance with the GSP eligibility criteria,” a re-negotiation of India’s place under the system is, however, unlikely, The Hindu reported quoting sources.

In a separate letter, Trump also informed the Congress of his intent to terminate the GSP beneficiary designation of Turkey. This was primarily because the economy of Turkey had improved a lot in the last four-and-a-half decades and is no longer a developing country.

“In the four-and-a-half decades since Turkey’s designation as a GSP beneficiary developing country, Turkey’s economy has grown and diversified,” he said.

Trump has had several disagreements with Turkey’s leader, Recep Tayyip Erdogan. His country’s once-robust economy has weakened, and that will likely be a key issue in local elections at the end of the month, said a Bloomberg report.

In a separate statement, the US Trade Representative (USTR) said India’s termination from GSP followed its failure to provide the US with assurances that it would provide equitable and reasonable access to its markets in numerous sectors. “India has implemented a wide array of trade barriers that create serious negative effects on United States commerce.  Despite intensive engagement, India has failed to take the necessary steps to meet the GSP criterion,” the United States Trade Representative (USTR) said on its website.

“By statute, these changes may not take effect until at least 60 days after the notifications to Congress and the governments of India and Turkey, and will be enacted by a Presidential Proclamation,” the USTR said.

Under the United States GSP programme, certain products can enter the US duty-free if the beneficiary developing countries meet the eligibility criteria established by Congress. The GSP criteria include, among others, respecting arbitral awards in favour of 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.

Points of friction

India’s new e-commerce rules, price controls on medical devices and tariffs on ICT (information and communications technology) products are among the issues that have caused trade frictions between the two countries. Trump has repeatedly taken shots at India’s tariffs, which he views as unreasonable. US commerce secretary Wilbur Ross recently raised concerns regarding new trade barriers created by India, hinting at the stringent e-commerce rules that affected US companies such as Amazon and Walmart-owned Flipkart.

The Trump Administration had launched an eligibility review of India’s compliance with the GSP market access criterion in April 2018. The USTR announced that it was reviewing the GSP eligibility of India, after the US dairy industry and the US medical devices industry requested a review of India’s GSP benefits, given India’s alleged trade barriers affecting US exports in these sectors. Total US imports under GSP in 2017 was $21.2 billion, of which India was the biggest beneficiary with $5.6 billion, followed by Thailand ($4.2 billion) and Brazil ($2.5 billion).

“India has implemented a wide array of trade barriers that create serious negative effects on United States commerce. Despite intensive engagement, India has failed to take the necessary steps to meet the GSP criterion,” the USTR said.

India to take it easy

The Indian government on Tuesday downplayed the effect of the decision by the United States government to withdraw trade concessions granted to India under the Generalised System of Preferences (GSP).

India’s Commerce secretary Anup Wadhawan, The Hindu reported, said that the impact would amount to $190 million on total export amount of $5.6 billion to the US.

He said disproportionate demands from the US led to the collapse of talks even though India was ready for greater market access in agricultural products to the US.

“The withdrawal of GSP benefits to India will have a minimal and moderate impact,” Wadhawan was reported to have said at a press conference. “The total GSP benefits amount to about $190 million on overall exports of $5.6 billion between the two countries.”

“We had worked out a meaningful package that covered the US’ concerns but they made additional requests which were not acceptable at this time,” he added.

Wadhawan added that India was still in talks with the US on the higher import duties that country charges on steel and aluminium, and said that India was still reviewing whether it would impose retaliatory tariffs or not. The government had in the middle of last year decided the list of items on which it would impose retaliatory tariffs, but has since then postponed the deadline of implementation six times, said The Hindu report. The latest deadline is April 1, 2019.

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Putin deliberately chose Christmas to attack, says Zelensky as Russia targets Ukrainian energy infrastructure

The Ukrainian Air Force stated that multiple missiles had been launched at the Kharkiv, Dnipro, and Poltava regions in the east.

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Russian President Vladimir Putin chose Christmas Day deliberately to launch a brutal assault on Ukraine’s energy infrastructure, resulting in widespread explosions throughout the country, said Ukrainian President Volodymyr Zelensky on Wednesday.

The attack involved a significant barrage of missiles and drones aimed at critical energy facilities, including a thermal power plant, prompting citizens to seek refuge in metro stations on Christmas morning.

“Today, Putin intentionally chose Christmas for this attack. What could be more inhumane?” Zelensky remarked, asserting that Russia is resolutely pursuing a strategy to cause blackouts across Ukraine.

He emphasised that each large-scale Russian strike necessitates careful preparation, stating, “It is never a spontaneous decision. It is a deliberate choice—not only of targets but also of timing.”

In his statement on X, Zelensky reported that more than 70 missiles, including ballistic types, and over 100 attack drones were launched at Ukraine’s power infrastructure.

Ukrainian Vice Prime Minister Oleksii Kuleba said that at least one person was killed in the Dnipro region due to the attacks. He noted that heating services were disrupted for 155 residential buildings in Ivano-Frankivsk and that around 500,000 residents, or 2,677 buildings, in the Kharkiv region, were left without heat.

Ukrainian Foreign Minister Andrii Sybiha mentioned that one Russian missile had passed through Moldovan and Romanian airspace. He added that Ukraine managed to intercept at least 50 missiles and a considerable number of drones during the attack.

Ukrainian Energy Minister Herman Halushchenko stated that Russia had significantly targeted the country’s energy infrastructure again in a Facebook post. The Ukrainian Air Force stated that multiple missiles had been launched at the Kharkiv, Dnipro, and Poltava regions in the east.

“The electricity distribution system operator is implementing necessary measures to limit consumption in order to reduce the negative impact on the power system,” he explained. “Once the security situation permits, energy workers will assess the damage.”

DTEK, Ukraine’s largest private energy company, reported that a Russian strike hit one of their thermal power plants on the morning of December 25, 2024, marking the 13th attack on Ukraine’s power grid this year. CEO Maxim Timchenko condemned the assault on X, stating, “Denying light and warmth to millions of peace-loving people celebrating Christmas is a depraved and evil act that must be answered.”

In response to the massive missile attack, the Ukrainian state energy operator, Ukrenergo, implemented preemptive power outages nationwide, resulting in electricity shortages in several districts of Kyiv.

In Kharkiv, at least seven strikes ignited fires throughout the city, as reported by regional head Oleh Syniehubov on Telegram. Authorities confirmed at least three injuries. Kharkiv Mayor Ihor Terekhov warned residents, “Kharkiv is under heavy missile fire. A series of explosions have occurred in the city, and ballistic missiles are still incoming. Please stay in safe locations.”

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Russia-bound Azerbaijan Airlines plane with 60 passengers crashes near Kazakhstan’s Aktau

Azerbaijan Airlines in a statement said the flight had made an emergency landing approximately three kilometres near Aktau.

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Russia-bound Azerbaijan Airlines plane with 60 passengers crashes near Kazakhstan’s Aktau

Many people are feared dead after a plane carrying 60 people crashed while making an emergency landing near Kazakhstan’s Aktau city on Wednesday. The authorities said that twelve people survived the crash.

Russian news agencies reported that Azerbaijan Airlines flight J2-8243 was en route from Baku to Grozny in Russia, but was rerouted due to fog in Grozny.

Furthermore, Kazakh media had initially reported that 110 people – 105 passengers and five crew members were on board. Later, the authorities revised the number to 72 – 67 passengers and five crew members.

A visual showed the moment the plane loses altitude and makes a rapid descent before it crashes and bursts into flames. As the plane crashes, plumes of smoke are seen rising on the spot. The plane crashed into an open field and burst into flames.

Kazakhstan’s emergency ministry stated that emergency services extinguished the fire at the crash site, adding that survivors were rushed to a nearby hospital for medical assistance.

Azerbaijan Airlines in a statement said the flight had made an emergency landing approximately three kilometres near Aktau. It added that the Embraer 190 aircraft operated by Azerbaijan Airlines, flight numbered J2-8243 on the Baku-Grozny route, made an emergency landing approximately three kilometres near the city of Aktau. Additional information regarding the incident will be provided to the public, it mentioned. Reports stated that the authorities said they had begun looking into different possible versions of what had happened, including a technical problem.

Meanwhile, in another recent deadly plane crash, 10 people died on Sunday after a small aircraft crashed in a Brazilian town that’s popular with tourists. The 10 deceased were passengers and crew on board. Over a dozen people on the ground were injured in the incident, Brazil’s Civil Defence Agency said.

The Civil Defence Agency said that the plane hit the chimney of a home and then the second floor of a building before crashing into a mobile phone shop in a largely residential neighbourhood of Gramado.  It was not immediately clear what caused the crash.

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YouTuber Zara Dar clarifies misconceptions, denies being Pakistani, and explains decision to quit PhD for OnlyFans

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Zara Dar clarifies her background and career change in a social media post

YouTuber Zara Dar, who sparked significant attention after revealing she was leaving her PhD studies to pursue a full-time career on OnlyFans, has addressed a series of misconceptions circulating about her. In a series of posts on social media platform X, Dar clarified the misinformation and took the opportunity to set the record straight on several points, particularly regarding her background and career shift.

The controversy began when Zara posted a video explaining her decision to quit her PhD in engineering and focus on adult content creation. The video quickly went viral, with some viewers misinterpreting or distorting the details of her story. One of the most prevalent rumors was that Zara Dar was of Pakistani origin.

In her clarification, Zara stated, “With all due respect, I am not Pakistani. I am American, born and raised, with a mixed background: American, Persian, Southern European, Middle Eastern, and Indian.” She explained that her name, “Darcy,” which she shortens to “Dar,” led to confusion, as it resembled that of a different Pakistani influencer, Zara Dar.

Zara also addressed the emergence of fake content under her name, including deepfake videos, and vehemently denied any associations with such material. She emphasized that, despite the false claims, she had not given any exclusive interviews and had only used social media to share her story.

Regarding her decision to leave academia, Zara shared that her shift to OnlyFans, while financially rewarding, also provided her with the freedom she felt was missing in her academic career. “It has given me the freedom to learn and share new content,” she stated, adding that while she had stepped away from her PhD, she would still continue to create educational content on her YouTube channel.

The announcement sent shockwaves across her fanbase, as many were surprised by her drastic career change. However, Zara explained that the decision was motivated not only by financial viability but also by her desire for personal autonomy outside the rigid structures of academia.

As Zara Dar continues to navigate the shift from academia to content creation, she remains committed to building her brand while tackling the misinformation surrounding her. Through her candid social media posts, she aims to keep her followers informed and provide clarity on her personal and professional choices.

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