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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]

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PM Modi’s Canada visit could help wrap trade talks, says Canada PM Mark Carney

Canadian PM Mark Carney said he is looking forward to hosting PM Narendra Modi, with both countries aiming to conclude their ongoing trade negotiations.

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Canadian Prime Minister Mark Carney has said he is looking forward to hosting Prime Minister Narendra Modi, as India and Canada continue efforts to advance their bilateral relationship and conclude ongoing trade negotiations.

The two countries have been working towards a Comprehensive Economic Partnership Agreement (CEPA), with both sides previously setting a target to conclude the negotiations in 2026.

Carney and Modi have held discussions on strengthening economic ties between India and Canada, including trade and investment. Their engagement has gained momentum following Carney’s visit to India earlier this year.

India-Canada trade talks

India and Canada formally resumed efforts towards a broader trade agreement after a period of strained bilateral ties. The two sides have committed to advancing negotiations on a CEPA covering their economic relationship.

In June, Carney and Modi reviewed progress in bilateral economic cooperation during their meeting on the sidelines of the G7 Summit in France. They expressed satisfaction with the progress in CEPA negotiations and reaffirmed their shared objective of concluding the talks in 2026.

During Carney’s visit to India in March, the two leaders had also agreed to accelerate negotiations on the CEPA and work towards finalising the agreement during 2026.

Modi’s proposed Canada visit

Carney had invited PM Modi to visit Canada in 2026, and the two leaders agreed to remain engaged through diplomatic channels to work towards a mutually convenient date for the visit.

The proposed visit comes as New Delhi and Ottawa seek to build on renewed diplomatic and economic engagement, with trade negotiations remaining a key part of the relationship.

The focus on completing the trade talks comes as both countries look to expand commercial ties and establish a broader economic framework through the proposed CEPA.

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Trump issues fresh Iran warning at UN General Assembly, signals deal after midterms

US President Donald Trump issued a fresh warning to Iran during his UN General Assembly address, saying he faces a choice between a deal and further escalation.

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US President Donald Trump used his address to the United Nations General Assembly on Tuesday to outline what he described as a major decision over Iran, putting the possibility of a deal against further military escalation.

Speaking at the UN in New York, Trump said he had a “big decision” to make. He questioned whether the United States should pursue an agreement that would allow Iran to rebuild or instead take further action against the Islamic Republic.

Trump later indicated that he believed an agreement with Iran could be reached after the US midterm elections, which are scheduled for November 3.

Trump says deal with Iran remains possible

During his speech, Trump presented two possible paths. He said a deal could allow Iran to rebuild and become a stronger country, while also raising the possibility of destroying the Islamic Republic if an agreement was not reached.

Trump said he believed a deal could eventually be reached, arguing that Iran was waiting to see the outcome of the US midterm elections.

His comments came amid the continuing US-Iran conflict and renewed diplomatic activity surrounding the confrontation. Trump’s UN appearance came as Washington was also engaged in discussions with multiple international leaders over the Iran conflict and other global issues.

Iranian delegation walks out during Trump’s speech

The Iranian delegation reportedly left the General Assembly chamber as Trump began describing the military confrontation with Iran.

According to the report, only one person from the Iranian delegation remained seated as Trump spoke about the conflict and the military strikes of the past six months.

The walkout came as tensions between Washington and Tehran remained high, with both sides facing pressure over the continuation of the conflict.

Trump’s latest warning follows earlier comments

Trump’s UN remarks came days after he said he was approaching a major decision over whether to intensify military action against Iran or pursue another route.

He had also indicated before his UN appearance that he could be open to meeting Iranian President Masoud Pezeshkian during the UN General Assembly in New York.

The possibility of renewed negotiations comes against the backdrop of continuing military and diplomatic tensions between the two countries.

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Visegrad Group backs India’s bid for permanent UN Security Council seat

India’s bid for a permanent UN Security Council seat received collective backing from the four Visegrad Group countries at a meeting in New York.

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India’s campaign for a permanent seat on the United Nations Security Council received fresh backing from four Central European countries at a meeting on the sidelines of the 81st UN General Assembly in New York.

The Visegrad Group, comprising Poland, Hungary, Slovakia and the Czech Republic, backed India’s call for permanent membership of the UN Security Council.

The support came during the first V4+India foreign ministers’ meeting involving External Affairs Minister S Jaishankar and his counterparts from the four-member grouping.

What Slovakia said on India’s UNSC bid

Slovak Foreign and European Affairs Minister Juraj Blanar said the four Visegrad countries agreed that India should have a permanent place on the UN Security Council.

Blanar described India as a country from the Global South and an emerging power in the Indo-Pacific region while expressing the group’s support for India’s permanent membership.

The statement was made after the meeting with Jaishankar in New York.

India has been seeking reform of the Security Council, including permanent membership, arguing for greater representation of today’s global political landscape.

India and V4 agree to deepen cooperation

The meeting was not limited to the Security Council issue. Jaishankar said India and the four Visegrad countries agreed to strengthen cooperation across several areas.

The countries agreed to hold annual meetings of foreign ministers and establish an annual business forum to deepen economic engagement.

The discussions also covered technology and innovation, research and education, defence, space, connectivity, culture and people-to-people relations.

Jaishankar described the first V4+India meeting as a “new historic occasion” and said India had very good relations with the four countries.

The ministers also discussed major international developments, including the conflict in Ukraine and developments in the Gulf.

What is the Visegrad Group?

The Visegrad Group, also known as V4, is a regional grouping of four Central European countries — Poland, Hungary, Slovakia and the Czech Republic.

The group was established in 1991 and provides a platform for cooperation in areas including political, economic, security and other matters.

India seeks permanent seat on UN Security Council

The UN Security Council currently has 15 members, including five permanent members — China, France, Russia, the United Kingdom and the United States — and 10 non-permanent members elected for two-year terms.

India has been seeking comprehensive reform of the Security Council and a permanent seat as part of that process.

The backing from the Visegrad Group adds four more countries to the list of nations supporting India’s permanent-membership demand. However, the V4 countries’ support by itself does not change the existing structure of the Security Council or complete the UN reform process. Any expansion would require the necessary agreement among UN member states and changes to the UN Charter.

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