*NEW DELHI - India likely to get yet another blow from United States administration over trade deal as US is unlikely to grant India the special status desired from the American administration.*
The United States does not believe that India is eligible for the grant of a special trade privilege but is renegotiating its terms after revoking the status earlier this year, US Secretary of Commerce Wilbur Ross told Reuters on Thursday.
Citing lack of reciprocal market access, the United States stripped India from the Generalized System of Preferences (GSP) programme that allowed duty-free entry for up to $5.6 billion worth of its annual exports to America. New Delhi responded with higher retaliatory tariffs on 28 US products, including almonds, apples and walnuts.
"If we can solve GSP, that's a very good step towards free trade," Mr Ross said.
"We are hopeful that those gaps can be closed and we can get a more favourable trade arrangement with India. GSP (reinstatement) could be called a limited trade deal."