After the recent collapse of the Doha round of WTO talks,
the US has held out veiled threats to deny India the
benefits of preferential trade unless the country adopts
a stance the US considers "beneficial to ending
the stalemate in world trade talks". This was indicated
by US trade representative Susan Schwab during a Congressional
review follows complaints from Capitol Hill that countries
like India and Brazil, which avail trade benefits, have
not been helpful in efforts to achieve agreement in
the Doha Round of global trade talks.
wants to determine whether certain nations should be
excluded from the generalised system of preferences
programme, which grants duty-free treatment for goods
from 133 developing countries, he said. India may be
among the nations that could lose preferential trade
benefits granted by the United States following a complaint
from the Congress that these countries are not adopting
a stand that is beneficial for solving the stalemate
in WTO talks.
that don't want to give us access to their markets in
the WTO negotiations, why should we continue to give
them preferential treatment?" quipped Charles Grassley,
the chair of the senate finance committee that has jurisdiction
over any legislation to extend the GSP programme.
over 30 years, Congress has given the GSP programme
broad bipartisan support. We believe this programme
serves as an important bridge for developing countries
to facilitate their transition
from unilateral preferences to full economic partnership,"
Schwab said, adding "Both the US and participating
countries benefit from expanded trade under GSP, and
it is important that this programme be reauthorised
when it expires at the end of the year."