GSP Review Begun for India, Indonesia, Kazakhstan

India's eligibility for the Generalized System of Preferences is being evaluated after petitions from American dairy interests and medical device manufacturers who complained about Indian trade policies on those products. The Office of the U.S. Trade Representative, which announced the review of three countries on April 12, had mentioned India's pricing controls on knee replacements and stents as a trade irritant in its annual trade report (see 1803300022). The two interest groups have been asking for India's removal from GSP since October 2017 (see 1710190022). India is the top beneficiary of GSP, accounting for $5.6 billion of the program's $21.1 billion in imports last year, according to USTR.

Indonesia, the fourth-largest beneficiary with $2 billion in imports last year, had a $13 billion trade deficit with the U.S. in 2016, according to USTR. The release about the review said that USTR decided to re-examine Indonesia's eligibility because of its barriers to U.S. services and goods, and its rules on investment. The release did not cite Indonesia's weak protections on intellectual property, which USTR has long complained about (see 1704280059).

The AFL-CIO asked the government to consider excluding Kazakhstan because of its labor policies. The former Soviet republic is the 12th-largest beneficiary of GSP, with $145 million in imports brought in duty-free through the program. “We hope that India, Indonesia, and Kazakhstan will work with us to address the concerns that led to these new reviews," Deputy U.S. Trade Representative Jeffrey Gerrish said.