New Delhi: The US could reverse the decision of withdrawing trade concessions to India under the Generalised System of Preferences (GSP) if the situation permits, US commerce secretary Wilbur Ross said on Tuesday.
Ross told CNBC-TV18 that the decision could be reversed if India addresses the issues raised during the negotiations.
Speaking at the Trade Winds Conference, Ross said that "India is already the world's third-largest economy, yet it is only the US's 13th largest export market, due to overly restrictive market access barriers."
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Ross said the US is India's largest export market, accounting for about 20 per cent of the total. "There is a real imbalance..and it's an imbalance we must strive to counteract".
However, he also mentioned that bilateral trade between the two countries totalled USD 142 billion, up almost USD 16 billion from 2017. Besides, US exports of goods to India increased last year by USD 7.4 billion, or an "impressive" 29 per cent, to USD 33 billion.
"But the problem is that goods imports from India were also up by more than 7 per cent, in fact by 12 per cent, to USD 54 billion, representing a trade deficit in goods of USD 21 billion," Ross said.
Ross also stressed the fact that US businesses face significant market access barriers in India which include both tariff and non-tariff barriers, as well as multiple practices and regulations to the disadvantage of foreign companies.
