Obama intends to withdraw special trade benefits for Russia

Tags: News
US President Barack Obama intends to withdraw special privileges granted to Russia because the country is too economically advanced to need preferential treatment reserved for less developed countries, the White House has said.

Obama notified Congress that he intends to remove Russia from the Generalised System of Preferences (GSP) programme as Moscow is "sufficiently advanced" to warrant any preferential treatment.

Once Russia's eligibility is withdrawn, which would be effected via a presidential proclamation, US imports of GSP-eligible goods from Russia will be subject to normal, non-preferential rates of duty, Obama in his notification said.

The purpose of the programme, which allowed $19.9 billion in imports to enter the US duty-free in 2012, is to assist developing countries to use trade to boost their economic development, US Trade Representatives (USTR) Mike Froman said.

"Russia has advanced beyond the level of economic development and competitiveness for GSP eligibility. As such, Russia should no longer qualify to receive GSP benefits," he said in a statement.

"The President's decision is consistent with the World Bank's designation of Russia as a 'high income country' as well as actions by the European Union and Canada to remove Russia from similar programmes," Froman said.

The US-Russia relations have hit an all-time low since the Cold War following the unrest in Ukraine, which Washington says is being fuelled by Moscow.

The announcement comes on a day when Russian President Vladimir Putin said his country has pulled troops back from the Ukraine border. But the White House was sceptical of the claim.

EDITORIAL OF THE DAY

  • Right to reveal

    Delhi is India’s first state to announce a scheme for witness protection. But what about the witnesses in other states?

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Urs Schoettli

New masters of the Financial Times

A few days ago, Japan’s leading financial daily Nihon Keizai ...

Anuja Sharma

Focus mindfully to get the result

Have you ever tried to light a fire using the ...

Gautam Gupta

Our fashion schools need to notch it up

“Creativity is the key to success and primary education is ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture