05 Mar – US intends to terminate trade preferences for Turkey, India
The US Trade Representative (USTR) announced in a press release that it intends to terminate India’s and Turkey’s designations as beneficiary developing countries under the Generalized System of Preferences (GSP) program.
The USTR cited Turkey’s higher level of economic development as the reason for its possible removal from the GSP program. The press release listed the increase in Turkey’s Gross National Income (GNI) per capita, declining poverty rates, and export diversification as evidence that the country’s economy is sufficiently developed.
Turkey has been a GSP beneficiary developing country since 1975.
India’s possible termination from the program followed its failure to take the necessary steps to meet the GSP criterion, the USTR stated. India stands as the world’s largest beneficiary of the GSP program.
The proposed changes are expected to take effect within 60 days after notifications to the US Congress and the governments of India and Turkey.