Around 44 influential lawmakers have urged the President Donald Trump's administration to reinstate India’s designation as a beneficiary developing nation as a potential trade deal between the two countries under the Generalized System of Preferences (GSP). The lawmakers have written a letter to the US Trade Representative Robert Lighthizer suggesting an 'early harvest approach' that would ensure long-sought market access gains for US industries are not held up by negotiations over remaining issues. 

What the letter says 

The bipartisan group is led by Congressmen Jim Himes and Ron Estes, stated the reports. Further, the letter to the US Trade representative has been signed by 26 Democrats and 18 Republicans. According to reports, even though India has been terminated, the real loss has been faced by America. The letter notes that the costs of GSP termination “are real for our constituents and growing every day”. The Coalition for GSP’s latest data shows that loss of GSP for India cost American companies about USD 30 million in July. "Just as the US industries are harmed by lack of fair and reciprocal access to India’s market, American companies and workers also are harmed by the new tariffs due to GSP termination," the lawmakers wrote. The Congressmen have urged Lighthizer to consider reinstating India's designation. India was the largest beneficiary of the programme in 2017 with USD 5.7 billion in imports to the US given duty-free status stated a report by the Congressional Research Service. The Trump administration had launched an eligibility review of India’s compliance with the GSP market access criterion in April 2018.

Read: 'Howdy Modi' to feature huge Indian-American cultural spectacle, Woven

Read: Indian-American doctor duo dream better medical education in India

About GSP 

The Trump administration had terminated India’s designation as a beneficiary developing nation under the Generalized System of Preferences (GSP) in June. According to reports, the GSP is the largest and oldest US trade preference programme. It is designed to promote economic development by allowing duty-free entry for thousands of products from designated beneficiary countries. The Coalition for GSP said in a statement that despite facing higher tariffs due to lost GSP, imports from India of (previously) GSP-eligible products increased over 40 per cent in June/July 2019 compared to a year earlier. 

Howdy Modi event 

American President Donald Trump and Prime Minister Narendra Modi will meet on September 22 in Houston during the 'Howdy Modi' event. The event is titled 'Share dreams, Bright Future'. It is said to focus on the success of the Indian-Americans and their contribution to the US. It will also focus on the US-India relationship. According to reports, the two sides might announce a potential deal on the longstanding trade issues, including GSP.

Read: Despite US ban, Huawei still the number 2 smartphone brand worldwide

Read: Despite US ban, Huawei emerging as tough competitor in tech market