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- Indian government has decided to extend the deadline to impose retaliatory import tariffs on 29 US products till June 16,2019.
- These deadlines were extended several times since June 2018 when India decided to impose these duties in retaliation to a move by the US to impose high customs duties on certain steel and aluminium products.
- Further,this extension comes in the backdrop of the US decision to withdraw export incentives being provided to Indian exporters under Generalised System of Preferences(GSP) programme.
- However,India may go ahead with its decision to impose retaliatory tariffs if the US withdraws the GSP benefits.GSP is a preferential tariff system extended by developed countries to developing countries which allows zero tariff imports from developing countries.
- The US wants India to (a)address the price cap issue for medical devices (b)provide greater market access for dairy and agricultural products and (c)reduce high import tariffs for mobile phones.
- In 2018, bilateral trade in goods and services registered a growth of 12.6% to $142 billion from $126 billion in 2017.
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