The $300m is the efficiency loss incurred by the U.S. which will need to either accept increased costs due to the new tariffs that result from the end of the Indian GSP status or pay more for the former imports from India by manufacturing them domestically (more expensively).
However, it is possible that other nations export to the U.S. in lieu of India. However, because these countries do not enjoy Indian efficiency, the $300,000 will be paid extra.
Yet, my argument neglects that other countries may be able to grow their industries and reach Indian efficiency. This may be possible especially for close competitors to India (maybe Indonesia?), who thus enjoy effective preferential market access.
Hello!
Sanjay, for (1), see my reply to Matt above.
The $300m is the efficiency loss incurred by the U.S. which will need to either accept increased costs due to the new tariffs that result from the end of the Indian GSP status or pay more for the former imports from India by manufacturing them domestically (more expensively).
However, it is possible that other nations export to the U.S. in lieu of India. However, because these countries do not enjoy Indian efficiency, the $300,000 will be paid extra.
Yet, my argument neglects that other countries may be able to grow their industries and reach Indian efficiency. This may be possible especially for close competitors to India (maybe Indonesia?), who thus enjoy effective preferential market access.