A visiting US trade delegation in India has announced $540 million in tariff reductions under the Generalised System of Preferences (GSP) programme. The reductions will mean zero duty in the leather, jewellery and carpet sectors.

The announcement was made by US trade representative Mr Robert Zoellick and came after a one-hour meeting with Indian commerce minister Murasoli Maran. Several issues were discussed at the meeting, including a bilateral trade policy working group and the World Trade Organisation.

Nearly half of India’s exports to the US are tariff-free, and George Bush is said to see India as a "priority country". GSP is a US government programme which makes tariff concessions to developing countries.

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