US to stop benefits to Indian textiles industry

The US does not wish to concede on its current stance to terminate benefits to the Indian textile industry under the GSP scheme.

The developing and the least-developed countries are allowed to export textiles and other products on a preferential tariff framework by industrialised countries on an MFN (most-favoured-nation) basis that requires all partners be treated on an equal footing.

The donor countries—the US, the European Union (EU), and Japan, among others—want to discontinue the MFN framework that would allow equal treatment for all countries for GSP benefits and introduce “differentiation” wherein they will decide which countries can avail of GSP benefits on their conditions.