It is an honour for India to be a developed country.
United States Trade Representative on 10/2/2020 has removed India from a list of developing countries. It is on the basis of India having 0.5% or more of world trade and being a member of G20. This prevents India from claiming concessions in trade with USA.
This move comes two weeks before Donald Trump’s visit to India on 24-25/2/2020. USA had ended Generalised System of Preference to India with effect from 5/6/2019. India has no probability of restoring it. India had responded by imposing higher customs duties on 28 American items with effect from 16/6/2019.
USTR has taken many countries out of list of developing countries. Argentina, Brazil, Indonesia, Malaysia, S. Africa, S. Korea, Singapore, Thailand, Ukraine and Vietnam are out of the list.
Trump puts America First. He does not want other countries to take advantage of USA. Under World Trade Organization Agreement on Subsidies and Countervailing Measures developed countries had some benefits in trade. Under Tariff Act 1930, USTR has responsibility to designate countries entitled to special thresholds. India and many other countries were designated as developing countries in 1998.
No country wanted to declare itself as developed. Trump decided USA will do it. Now India has to do better. Or India can engage in trade war with USA.
Trump took USA out of Trans-Pacific Partnership. He did not proceed with Transatlantic Trade and Investment Partnership. He threatened trans-Atlantic trade war. He replaced North American Free Trade Agreement with United States-Mexico-Canada Agreement. He started trade war with China.
India has an opportunity to accept developed country tag and work on it. There is no glory in claiming to be a developing country and asking for concessions.
