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Gold jewellery: duty for export to U.S.

Bush withdraws concession

WASHINGTON: Days after the collapse of G4 talks on WTO, the United States has withdrawn concessions given to import on gold jewellery and brass lamps from India as well as auto parts from Brazil as part of a revision of trade sops given to developing countries.

The duty-free access was withdrawn under its annual review of Generalised System of Preferences (GSP) through a proclamation signed by President George Bush on Thursday.

The changes mean exporters of gold jewellery from India, the world’s largest producer, will now have to pay an import duty of four per cent. The move will impact close to $1.8 billion of jewellery export to the U.S., which accounts for one-third of the total shipment of $5.21 billion. The decision will also affect the export of brass lamps, hitting the handicraft sector already struggling under the impact of a hike in rupee value.

The concessions were removed on imports exceeding the new statutory threshold in 2006 established by Congress, Trade Representative Susan Schwab said in a statement.

Brazil has also been hit by the withdrawal of GSP benefits on brake, brake parts and ferrozirconium. Besides, gold jewellery from Thailand, wiring harnesses from the Philippines and methanol from Venezuela were also excluded.

On Thursday, Commerce Minister Kamal Nath said he had “mentioned” the issue of withdrawing GSP benefits to Ms. Schwab at the Potsdam meeting. “It is a unilateral programme of the United States. There is nothing that India can demand of this,” Mr. Nath had said. “But we will take note of the termination. And at a time in future we will remember it.” — PTI

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Gold jewellery: duty for export to U.S.

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