{"id":3004,"date":"2020-02-17T13:42:25","date_gmt":"2020-02-17T13:42:25","guid":{"rendered":"https:\/\/www.ixambee.com\/blog\/?p=3004"},"modified":"2021-02-11T12:54:15","modified_gmt":"2021-02-11T07:24:15","slug":"big-trouble-india-out-of-ustr-developing-countries-list","status":"publish","type":"post","link":"https:\/\/blog.ixambee.com\/big-trouble-india-out-of-ustr-developing-countries-list","title":{"rendered":"Big Trouble: India out of USTR Developing Countries List"},"content":{"rendered":"\n<p>India\u2019s stumbling economy receives a major jerk on 10th February\nwhen USTR stripped India from developing countries tag under US <strong>Counter- Vailing Duty Law or CVD<\/strong>, which\nis a form of import tax imposed on certain goods to prevent dumping or counter\nexport subsidies. With sluggish job creation, rising piles of NPA, stress on\nrural households, credit crunch among NBFIs, low consumer confidence as\nrepresented by RBI\u2019s latest survey, drop in private investments and\nprofitability, this step by the US was <strong>A\nBOLT FROM THE BLUE<\/strong>, as India relation with the US was on good terms.<\/p>\n\n\n\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Before\ngoing deep into the article let&#8217;s have a quick look at what is USTR and why\nthis step by the US is a cause of concern for India\u2019s economy.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What is USTR ?<\/strong><\/h2>\n\n\n\n<p><strong>United States Trade Representative<\/strong> or <strong>USTR<\/strong> is part of the executive office of\nthe President and headed by Cabinet Member who is US trade representative and\nserves as President Principal Trade advisor, spokesperson on trade issues. USTR\nis basically responsible for nurturing and coordinating US international trade,\ninvestment policy and negotiations with other countries. It covers various\nissues ranging from agriculture, labour, industry and manufacturing,\nenvironment, intellectual property etc. in addition to pursuing US trade policy\nobjectives.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Countries Removed from USTR<\/strong><\/h3>\n\n\n\n<p>India, Thailand, Hong Kong,\nBrazil, Indonesia, Malaysia, Vietnam, South Africa and Argentina. Now USTR has <strong>36 developing<\/strong> and <strong>44 least developed <\/strong>countries.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Why India\nwas removed from the USTR list of developing countries<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>India has more than 0.5% share of global trade, despite having $12,375 GNI, which is the World Bank threshold separating high income from other countries.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>Part of the G-20 group which has a global economic significance and accounts for large shares of global economic output and trade, indicating a country is developed.<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>The US has accused India of claiming wrong trade benefits as significant growth has taken place in the last few decades.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>USTR\ncriteria for the updated list<\/strong>\u00a0<\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>World Bank\u2019s date on <strong>Gross National Income<\/strong> or <strong>GNI<\/strong><\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>A country share of world trade as obtained from the trade date monitor<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>Central Bank,\u00a0 National Statistical Bureau, Customs authority etc. official date<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>Miscellaneous factors like EU, G-20, OECD membership<\/li><\/ul>\n\n\n\n<p>The list\nwas updated in order to harmonize with the obligations under WTO Agreement on <strong>Subsidies and Countervailing Measure<\/strong> or\n<strong>SCM<\/strong>. Under the agreement, countries\ncovered claim benefits for preferential treatment with respect to Countervailing Measures\nand Duties. The US allowed such developing countries to export certain goods in\ntheir country without punitive tariffs as imposed on developed nations.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Why\nrevocation of India\u2019s Status &#8211; concern matter<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>The US drastic step is a matter of grave concern for India<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>It will have a lower level of protection against a CVD investigation<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>Now the US will be free to hold an investigation under CVD law into trade policies of excluded countries if feel such policies are harming US domestic traders<\/li><\/ul>\n\n\n\n<ul class=\"wp-block-list\"><li>India was the largest beneficiary under the <strong>Generalised System of Preference<\/strong> or <strong>GSP<\/strong> thus exempted from import tariffs over 2000 goods till 2019 and India was in talk with the US regarding the matter. Such a step makes the task of reclaiming the lost GSP more arduous and shadowy.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Conclusion<\/strong><\/h3>\n\n\n\n<p>\u00a0Revocation of India\u2019s tag of developing status will give a loss of $260 million in GSP benefits besides exacerbating the problem of jobs lost in an economy faced with growing unemployment and stagflation more painful. Tariff war can rise if all the stripped countries retaliate by imposing tariffs on imported US goods. This move can bitter the constructive and cordial trade relation between India and the US. As Mr Trump is due to visit India on February 24 and 25 and a trade package is scheduled to finalize before the U.S. President\u2019s arrival, this move, thus makes the India- US relationship a <strong>diplomatic tightrope walk<\/strong>.<\/p>\n\n\n\n<p>\u00a0\u00a0\u00a0\u00a0This article can be very useful for the upcoming NABARD Grade A and can be asked as an objective in RBI Assistant and SBI Clerk. Please share your feedback and do comment if you like us to cover any important topic that we have missed out or you want in depth detail of any important issues, as this will help us to improve, grow and nurture.<\/p>\n\n\n\n<p><strong>Also Read<\/strong><\/p>\n\n\n\n<p><a href=\"https:\/\/www.ixambee.com\/blog\/chief-justice-of-india-updated-list\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"Chief Justice of India List (opens in a new tab)\">Chief Justice of India List<\/a><\/p>\n\n\n\n<p><a rel=\"noreferrer noopener\" aria-label=\"IFAD Full Form (opens in a new tab)\" href=\"https:\/\/www.ixambee.com\/blog\/full-form-of-ifad-with-all-details\" target=\"_blank\">IFAD Full Form<\/a><\/p>\n\n\n\n<p><a rel=\"noreferrer noopener\" aria-label=\"India's GDP Forecast (opens in a new tab)\" href=\"https:\/\/www.ixambee.com\/blog\/indias-gdp-growth-forecast-2019-20-and-2020-21-by-various-financial-organizations\" target=\"_blank\">India&#8217;s GDP Forecast<\/a><\/p>\n\n\n\n<p> <em>Get Free\u00a0<a rel=\"noreferrer noopener\" href=\"https:\/\/www.ixambee.com\/free-mock-tests\" target=\"_blank\">Online Test Series<\/a>,\u00a0GK updates in form of\u00a0<a rel=\"noreferrer noopener\" href=\"https:\/\/www.ixambee.com\/beepedia-gk-updates-capsule\" target=\"_blank\">Beepedia<\/a>,\u00a0<a rel=\"noreferrer noopener\" href=\"https:\/\/www.ixambee.com\/beebooster-ga-updates-capsule\" target=\"_blank\">BeeBooster<\/a>,\u00a0\u00a0as well as latest updates for\u00a0<a rel=\"noreferrer noopener\" href=\"https:\/\/www.ixambee.com\/free-mock-tests\/bank-po-exams\" target=\"_blank\">Bank PO<\/a>,\u00a0<a rel=\"noreferrer noopener\" href=\"https:\/\/www.ixambee.com\/free-mock-tests\/bank-clerk-exams\" target=\"_blank\">Bank Clerk<\/a>,\u00a0<a rel=\"noreferrer noopener\" href=\"https:\/\/www.ixambee.com\/free-mock-tests\/ssc-exams\" target=\"_blank\">SSC<\/a>,\u00a0<a rel=\"noreferrer noopener\" href=\"https:\/\/www.ixambee.com\/free-mock-tests\/rbi-exams\" target=\"_blank\">RBI<\/a>,\u00a0<a rel=\"noreferrer noopener\" href=\"https:\/\/www.ixambee.com\/free-mock-tests\/nabard-exams\" target=\"_blank\">NABARD\u00a0<\/a>and Other\u00a0<a rel=\"noreferrer noopener\" href=\"https:\/\/www.ixambee.com\/exams\" target=\"_blank\">Government Jobs.<\/a><\/em> <\/p>\n\n\n\n<p><\/p>\n <span style=\"position:absolute;visibility: collapse;\"><a href=\"https:\/\/credit-n.ru\/zaymyi-next.html\">\u0431\u044b\u0441\u0442\u0440\u044b\u0439 \u0437\u0430\u0439\u043c \u043d\u0430 \u043a\u0430\u0440\u0442\u0443 \u0431\u0435\u0437 \u043f\u0440\u043e\u0432\u0435\u0440\u043e\u043a<\/a><a href=\"https:\/\/credit-n.ru\">\u043c\u0430\u043d\u0438 \u043c\u0435\u043d \u0437\u0430\u0439\u043c<\/a><a href=\"https:\/\/credit-n.ru\/zaymyi.html\">\u0437\u0430\u0439\u043c \u043f\u043e \u0442\u0435\u043b\u0435\u0444\u043e\u043d\u0443<\/a><\/span>","protected":false},"excerpt":{"rendered":"<p>India\u2019s stumbling economy receives a major jerk on 10th February when USTR stripped India from developing countries tag under US Counter- Vailing Duty Law or CVD, which is a form of import tax imposed on certain goods to prevent dumping or counter export subsidies. With sluggish job creation, rising piles of NPA, stress on rural [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":3009,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9,8],"tags":[],"class_list":["post-3004","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-current-affairs","category-daily-gk"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>India- US Relation In Turmoil: USTR Revoke India&#039;s Developing Nation tag<\/title>\n<meta name=\"description\" content=\"India Removed From Developing Nation List By USTR: Get here detailed insight into the issue, what is USTR, India&#039;s concern, its impact\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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