US decision to remove India from special trade status- bash or boon

Generalised system of preferences is a trade method decided in legal proficiency back in 1972 and introduced as a financial scheme by United States back in 1976 in process to aid the developing nations so their financial backwardness can be demolished and they can come to right pathways by support of a country like US for their virtual financial performances lifted by preferential treatments specially for international nevigation when it comes to trade and economic surplus.
Though in recent past it was found that not only certain developing countries but even United States in case of certain countries started to misuse the benefits of such a measure and started to target trade preferences on basis of special treatment, conventional trade approach and hence the challenges of the scheme started to blend in with international policy making that brought conflict into presentation.
However India has got the benefits of such a policy for export and has helped also gain US to raise it’s trade with the country up to 42% more benefit than compared before which means that in process both countries were in benefit uptil ths scheme of system was applied for India in terms of economic stature.
Although about March 2019 US started to give hints that It would wish to dismiss the benefits of special trade status for country like India after being able to find through it’s committee analyses that the country is misusing the benefits gained under STS and hence has been found that in June 2019 has decided to terminate this status with the country in context of it’s own ways or methods applied.
Coming back to the results it may perspire- There is a certain negative asset country like India will have to face though specially in context of Exports related systems but it’s not like that US will have any reprieve and they shall also have to face losses financially in consent relative to India and it should surely derail their global economic perspirations.
What is necessary to understand here that United States has a unique financial trust with India and if it is fearing that Special Trade Status like policy is benefiting India then it should also consider it’s own benefit it is having by providing such scheme.
And if it is ready to prepare itself for the losses it will have then it can decide the ways it may suit best and it should ultimately be the cost of it that removal of such scheme for country like India will make losses possible to United States also.
Although there is one positive view point to look and that is in regard of global economic impact that US looks India as a strengthened economy and feel that even without such preferential treatment the country shall continue to take more economic leaps worldwide which can be a very strong message across the globe.
Whatever may be the thought behind, if it is in negative phase things can become more tricky than US-China Trade war of 2018, or if it is in positive way US-Indian relations can reach to more heights- All that is vital for both countries that it should not affect the byllateral trade relations and that is the most vibrant concern at large…


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thank u so much

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