US Senators John Cornyn and Mark Warner have asked the US State Department to <a href="https://www.wionews.com/india-news/trump-urged-to-delay-decision-on-ending-preferential-trade-deal-with-india-206407">delay the issuance of a Presidential proclamation to withdraw India's GSP benefit</a> "by at least 30 days" beyond the stipulated time in order to move negotiations beyond ongoing elections, which may "serve as a hindrance" for the Indian side.

In a letter addressed to US Trade Representative Robert Lighthizer, the co-chairs of the United States Senate's India Caucus said,&nbsp;"As you know, India's elections will conclude on May 23, 2019. We believe that the election season may serve as a hindrance for our Indian counterparts in negotiating and concluding a deal on difficult political issues."

"If another round of negotiations during the election season does not resolve the outstanding issues, we would ask you to consider delaying the issuance of a Presidential proclamation to withdraw India's <a href="https://www.wionews.com/business-economy/i-intend-to-end-indias-preferential-trade-treatment-under-gsp-program-trump-201179">Generalised System of Preferences</a> (GSP) benefits by at least 30 days, beyond the 60 day calendar, in order to move the negotiations beyond India's elections," the co-signed letter, sent on April 12, read.

"We believe that allowing for continued negotiations beyond the elections would underscore the importance of this bilateral relationship and provide a real opportunity to resolve these market access issues, potentially improving the overall US-India relationship for years to come," the two Senators wrote.

This comes as US President Donald Trump announced his decision to withdraw India from the list of countries enjoying the GSP program on goods exported to the US last month.

Trump cited India's non-compliance with the statutory eligibility criteria as the reason behind the decision.

Under the GSP or zero-tariff policy measures, India enjoys tariff concession costing to $5.6 billion of exports to the US. India has been the world's largest beneficiary of the GSP scheme that has been in force since the 1970s.

The two Senators highlighted that the US decision would affect American consumers.

"While we agree that there are a number of market access issues that can and should be addressed, we do remain concerned that the withdrawal of duty concessions will make Indian exports of eligible products to the United States costlier, as the importer of those products will have to pay a "Most Favored Nation" (MFN), duty which is higher than the rate under GSP. Some of these costs will likely be passed on to American consumers," the letter stated.

US Senators John Cornyn and Mark Warner have asked the US State Department to delay the issuance of a Presidential proclamation to withdraw India's GSP benefit "by at least 30 days" beyond the stipulated time in order to move negotiations beyond ongoing elections, which may "serve as a hindrance" for the Indian side.

US Senators John Cornyn and Mark Warner have asked the US State Department to delay the issuance of a Presidential proclamation to withdraw India's GSP benefit "by at least 30 days" beyond the stipulated time in order to move negotiations beyond ongoing elections, which may "serve as a hindrance" for the Indian side. In a letter addressed to US Trade Representative Robert Lighthizer, the co-chairs of the United States Senate's India Caucus said, "As you know, India's elections will conclude on May 23, 2019. We believe that the election season may serve as a hindrance for our Indian counterparts in negotiating and concluding a deal on difficult political issues." "If another round of negotiations during the election season does not resolve the outstanding issues, we would ask you to consider delaying the issuance of a Presidential proclamation to withdraw India's Generalised System of Preferences (GSP) benefits by at least 30 days, beyond the 60 day calendar, in order to move the negotiations beyond India's elections," the co-signed letter, sent on April 12, read. "We believe that allowing for continued negotiations beyond the elections would underscore the importance of this bilateral relationship and provide a real opportunity to resolve these market access issues, potentially improving the overall US-India relationship for years to come," the two Senators wrote. This comes as US President Donald Trump announced his decision to withdraw India from the list of countries enjoying the GSP program on goods exported to the US last month. Trump cited India's non-compliance with the statutory eligibility criteria as the reason behind the decision. Under the GSP or zero-tariff policy measures, India enjoys tariff concession costing to $5.6 billion of exports to the US. India has been the world's largest beneficiary of the GSP scheme that has been in force since the 1970s. The two Senators highlighted that the US decision would affect American consumers. "While we agree that there are a number of market access issues that can and should be addressed, we do remain concerned that the withdrawal of duty concessions will make Indian exports of eligible products to the United States costlier, as the importer of those products will have to pay a "Most Favored Nation" (MFN), duty which is higher than the rate under GSP. Some of these costs will likely be passed on to American consumers," the letter stated.

Delay Generalised System of Preferences eligibility decision till Indian elections: US

Two US senators have called on Prime Minister Narendra Modi to soften India's stance on data localisation, warning that measures requiring it represent "key trade barriers" between the two nations.

In a letter to Modi dated Friday, US Senators John Cornyn and Mark Warner - co-chairs of the Senate's India caucus that comprises over 30 senators - urged India to instead adopt a "light touch" regulatory framework that would allow data to flow freely across borders.

The letter comes as relations between Washington and New Delhi are strained over multiple issues, including an Indo-Russian defence contract, India's new tariffs on electronics and other items, and its moves to buy oil from Iran despite upcoming US sanctions.

Global payments companies including Mastercard, Visa and American Express have been lobbying India's finance ministry and the Reserve Bank of India to relax proposed rules that require all payment data on domestic transactions in India be stored inside the country by October 15.

The letter is most likely a last-ditch effort after the RBI told officials at top payment firms this week that the central bank would implement, in full, its data localisation directive without extending the deadline, or allowing data to be stored both offshore as well as locally - a practice known as data mirroring.

"We see this (data localisation) as a fundamental issue to the further development of digital trade and one that is crucial to our economic partnership," the U.S. senators said in the letter that has not been previously reported.

Modi's office did not immediately respond to an email seeking comment.

Localisation push

Other than the RBI proposal, India is working on an overarching data protection law that calls for storing all critical personal data in India. E-commerce and cloud computing policies are also being developed.

The letter also raised concerns on the draft data protection bill and e-commerce policy framework that called for stringent localisation measures.

These measures have unnerved some tech companies who fear it will increase their infrastructure costs, hit their global fraud detection analytic platforms and affect planned investments in India at a time when more and more Indians are going online and using digital payments.

US lobby groups, that represent companies such as Facebook Inc, Amazon.com and Alphabet Inc-owned Google, have also voiced concerns about the proposals.

Shamika Ravi, a member of Modi's economic advisory council, had earlier told Reuters that the moves were in the "long-term strategic and economic interest" of the country.

The senators added that any concerns related to "protection and security" as well as access to data for lawful purposes were possible without restrictions on physical location, according to the letter.

Government sources have previously told Reuters though, that stringent data localisation measures were essential for gaining easier access to data during investigations.

The measures in India come at a time when countries around the world are announcing stringent rules to regulate how firms store data and protect privacy, in the aftermath of Facebook's Cambridge Analytica scandal.

Two US senators have called on Prime Minister Narendra Modi to soften India's stance on data localisation, warning that measures requiring it represent "key trade barriers" between the two nations.

Two US senators have called on Prime Minister Narendra Modi to soften India's stance on data localisation, warning that measures requiring it represent "key trade barriers" between the two nations. In a letter to Modi dated Friday, US Senators John Cornyn and Mark Warner - co-chairs of the Senate's India caucus that comprises over 30 senators - urged India to instead adopt a "light touch" regulatory framework that would allow data to flow freely across borders. The letter comes as relations between Washington and New Delhi are strained over multiple issues, including an Indo-Russian defence contract, India's new tariffs on electronics and other items, and its moves to buy oil from Iran despite upcoming US sanctions. Global payments companies including Mastercard, Visa and American Express have been lobbying India's finance ministry and the Reserve Bank of India to relax proposed rules that require all payment data on domestic transactions in India be stored inside the country by October 15. The letter is most likely a last-ditch effort after the RBI told officials at top payment firms this week that the central bank would implement, in full, its data localisation directive without extending the deadline, or allowing data to be stored both offshore as well as locally - a practice known as data mirroring. "We see this (data localisation) as a fundamental issue to the further development of digital trade and one that is crucial to our economic partnership," the U.S. senators said in the letter that has not been previously reported. Modi's office did not immediately respond to an email seeking comment. Localisation push Other than the RBI proposal, India is working on an overarching data protection law that calls for storing all critical personal data in India. E-commerce and cloud computing policies are also being developed. The letter also raised concerns on the draft data protection bill and e-commerce policy framework that called for stringent localisation measures. These measures have unnerved some tech companies who fear it will increase their infrastructure costs, hit their global fraud detection analytic platforms and affect planned investments in India at a time when more and more Indians are going online and using digital payments. US lobby groups, that represent companies such as Facebook Inc, Amazon.com and Alphabet Inc-owned Google, have also voiced concerns about the proposals. Shamika Ravi, a member of Modi's economic advisory council, had earlier told Reuters that the moves were in the "long-term strategic and economic interest" of the country. The senators added that any concerns related to "protection and security" as well as access to data for lawful purposes were possible without restrictions on physical location, according to the letter. Government sources have previously told Reuters though, that stringent data localisation measures were essential for gaining easier access to data during investigations. The measures in India come at a time when countries around the world are announcing stringent rules to regulate how firms store data and protect privacy, in the aftermath of Facebook's Cambridge Analytica scandal.

US senators writes to Modi to soften data localisation stance

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Delay Generalised System of Preferences eligibility decision till Indian elections: US

US senators writes to Modi to soften data localisation stance