Hayat Ashraf

It is accepted wisdom that GSP renewal would offer an avenue for wide-ranging U.S.-India trade negotiations that can help in vaulting the bilateral trade relationship.  About Generalized System of Preferences (GSP):  It was instituted in 1971 under the aegis of the United Nations Conference on Trade and Development (UNCTAD). It is a voluntary trade measure implemented by developed countries that provides an advantageous, or “preferential”, tariff treatment to imports from developing countries. The preferences are in the form of either elimination or reduction in customs duty when the list of eligible products from the beneficiary developing country (BDC) is exported to the developed country. However, an exporter under the GSP is required to fulfil the rules of origin under the GSP scheme. The rules of origin are the criteria required to ensure that the product exported originates from the country of export and is not being diverted from another country. The GSP is a unilateral...