US does not consider India, China as developing countries for trade benefits
The U.S. admiration is making a change in a key exemption to America’s trade-remedy laws so that it becomes easy to penalize about two dozen so-called developing countries including China, India and South Africa.
The U.S. has identified its internal list of developing and least-developed countries in order to reduce the threshold for triggering a U.S. investigation into whether nations are harming U.S. industries with unfairly subsidized exports, according to a U.S. Trade Representative notice.
In doing so, the U.S. eliminated its special preferences for a list of self-declared developing countries that includes: Albania; Argentina; Armenia; Brazil; Bulgaria; China; Colombia; Costa Rica; Georgia; Hong Kong; India; Indonesia; Kazakhstan; the Kyrgyz Republic; Malaysia; Moldova; Montenegro; North Macedonia; Romania; Singapore; South Africa; South Korea; Thailand; Ukraine; and Vietnam.
USTR said the decision to revise its developing country methodology for countervailing duty investigations was necessary because America’s previous guidance - which dates back to 1998 - “is now obsolete.”
The development marks a noteworthy departure from two decades of American trade policy regarding developing nations that could result in more stringent penalties for some of the world’s top exporters.
This move also put forward U.S. President Donald Trump’s frustration that large economies like China and India are permitted to receive preferential trade benefits as developing nations at the World Trade Organization.
The U.S. administration has asked to end these special preferences for nations that comes under certain categories like members of global economic clubs like the Group of 20, the OECD or who are classified as high-income nations by the World Bank
Last July, Trump issued an executive memo that asked U.S. Trade Representative Robert Lighthizer to determine whether there’s been “substantial progress” toward limiting the number of countries considered developing nations. The U.S. may act unilaterally if not, Trump said.
Several of the de-listed countries in the USTR notice have already agreed to relinquish their developing-country rights in future trade negotiations, including Brazil, Singapore and South Korea.
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