ANI | Updated: Jun 06, 2019 16:36 ISTMoradabad (Uttar Pradesh) [India], June 6 (ANI): Handicraft traders of Moradabad are tensed after US President Donald Trump terminated India's preferential trade system, under the Generalized System of Preferences (GSP) on Wednesday.Speaking to ANI, trader Sharad Bansal of Bansal Impex said: "Earlier almost all the products which were being exported from India to the US used to be duty-free.

But now that the GSP has expired, almost 5-12 per cent duty would be levied on Indian imports.

This would affect our sector badly and we would be needing help from the government to take control of the situation."Another trader Ravi Arora, chairman of Ravi Handicrafts, said that he is hopeful that things will fall back into place after an initial phase of uncertainty.

"Termination of GSP will only have a temporary effect on the Indian handicraft sector.

The US wants its economy to grow better and faster hence they terminated the GSP and imposed a duty on Indian imports.

It will affect the entire handicraft trade of our country especially Moradabad exporters, but it would be a temporary change and everything will get back on track within some time."He, however, believes that the government will do something to tide over this phase.

"Moradabad handicraft export trade is worth Rs 4,000 crore, I believe that our government will do something for the welfare of the exporters and launch a scheme that benefits them as this termination has badly hit exporters of this sector," he said.Generalized System of Preferences is a preferential tariff system which allows various counties to export tariff-free in US markets.

This system was designed by the US government in order to support developing countries to grow their trade and make their prime trade sectors stronger.

(ANI)