India and the United States are in a deadlock over contentious trade issues after the Donald Trump administration sought a formal commitment of additional purchases of $10 billion annually for the next three years, as part of a trade agreement under negotiation
India has a surplus of $23 billion in trade with America, and the U.S. wants to wipe that off by forcing more imports by New Delhi, as part of a proposed trade agreement.
Generalised System of Preferences (GSP) of India with USA:
- GSP, is a preferential tariff system which provides for a formal system of exemption from the more general rules of the World Trade Organization (WTO).
- Specifically, it is a system of exemptions from the most favoured nation principle (MFN) that obliges WTO member countries to treat the imports of all other WTO member countries no worse than they treat the imports of their “most favored” trading partner.
- In essence, MFN requires WTO member countries to treat imports coming from all other WTO member countries equally, that is, by imposing equal tariffs on them
- GSP exempts WTO member countries from MFN for the purpose of lowering tariffs for the least developed countries, without also lowering tariffs for rich countries.
In which previous cases has USA suspended GSP status of countries?
- The United States has excluded countries from GSP coverage for variety of reasons such as being communist (Vietnam), being placed on the U.S. State Department’s list of countries that support terrorism (Libya), and failing to respect U.S. intellectual property laws.
Joint Comprehensive Plan Of Action (JCPOA) known commonly as the Iran nuclear deal or Iran deal, is an agreement on the nuclear program of Iran reached in Vienna on 14 July 2015 between Iran, the P5+1(the
five permanent members of the United Nations Security Council— China, France, Russia, United Kingdom, United States—plus Germany), and the European Union.
Under the agreement, Iran agreed to eliminate its stockpile of medium-enriched uranium, cut its stockpile of low-enriched uranium by 98%, and reduce by about two-thirds the number of its gas centrifuges for 13 years.
For the next 15 years, Iran will only enrich uranium up to 3.67%.
Iran also agreed not to build any new heavy-water facilities for the same period of time.
Uranium-enrichment activities will be limited to a single facility using firstgeneration centrifuges for 10 years. Other facilities will be converted to avoid proliferation risks.
To monitor and verify Iran’s compliance with the agreement, the International Atomic Energy Agency (IAEA) will have regular access to all Iranian nuclear facilities.
The agreement provides that in return for verifiably abiding by its commitments, Iran will receive relief from U.S., European Union, and United Nations Security Council nuclear-related economic sanctions.