U.S. Trade Representative’s Office says the two countries ‘no longer comply with statutory eligibility criteria’
At President Donald Trump’s direction, the United States intends to scrap the preferential trade status granted to India and Turkey, officials said on Monday.
Washington “intends to terminate India’s and Turkey’s designations as beneficiary developing countries under the Generalized System of Preferences (GSP) program because they no longer comply with the statutory eligibility criteria,” the U.S. Trade Representative’s Office said in a statement.
India has failed to provide assurances that it would allow required market access, while Turkey is “sufficiently economically developed” that it no longer qualifies, USTR added.
Under the GSP program, “certain products” can enter the U.S. duty-free if countries meet eligibility criteria including “providing the United States with equitable and reasonable market access.” India, however, “has implemented a wide array of trade barriers that create serious negative effects on United States commerce,” the statement said.
Turkey, after being designated a GSP beneficiary in 1975, has meanwhile demonstrated a “higher level of economic development,” meaning that it can be “graduated” from the program, according to USTR.