Question

Q. With reference to India - US Trade Relations, which of the following statements are correct?

Select the correct answer using the code below:

• A.
  1 and 2 only
• B.
  2 and 3 only
• C.
  1 and 3 only
• D.
  1, 2 and 3

Answer 1

The correct option is A

1 and 2 only
Explanation:

Statement 1 is correct: In 2019 the US terminated India’s eligibility for the Generalised System of Preferences (GSP). It accused India of failure to provide equitable and reasonable market access.

Statement 2 is correct: The GSP intends to promote economic development in beneficiary countries by eliminating duties on some products the US imports from them.

Statement 3 is incorrect: Union Commerce Minister’s response to the Lok Sabha on 11 December 2019 - “So far the cumulative exports under the GSP tariff lines have not declined in the post GSP withdrawal period (June – Oct 2019) as compared to the corresponding period of the previous year.”