US to end trade preferences for Turkey, India

By Michael Hernandez</p> <p>WASHINGTON (AA) – The U.S. on Monday announced its intention to terminate preferential tariff systems for Turkey and India which are aimed at bolstering the trading prospects of developing nations.</p> <p>The end of Turkey's designation under the Generalized System of Preferences (GSP) program is due to its economy becoming sufficiently developed, the U.S. Trade Representative's office said in a statement. </p> <p>Turkey was designated as a program beneficiary in 1975, and the trade representative's office pointed to a number of advancing economic metrics in establishing its determination. </p> <p>&quot;An increase in Gross National Income (GNI) per capita, declining poverty rates, and export diversification, by trading partner and by sector, are evidence of Turkey’s higher level of economic development,&quot; it said. </p> <p>India, meanwhile, is being terminated from the program because it has failed &quot;to provide the United States with assurances that it will provide equitable and reasonable access to its markets in numerous sectors&quot;.</p> <p>&quot;India has implemented a wide array of trade barriers that create serious negative effects on United States commerce. Despite intensive engagement, India has failed to take the necessary steps to meet the GSP criterion,&quot; the trade representative's office added.</p> <p>President Donald Trump sent letters to Congress and the Turkish and Indian governments to notify them of the changes, setting off a 60-day countdown after which they will take effect via presidential proclamation. </p> <p>&quot;In the four and a half decades since Turkey's designation as a GSP beneficiary developing country, Turkey's economy has grown and diversified,&quot; Trump wrote in a letter to lawmakers, adding Washington &quot;remains committed to fair and reciprocal trade with Turkey&quot;.</p> <p>India was the largest beneficiary of the system, with it covering roughly $5.69 billion in imports, according to a report issued by the Congressional Research Service in January. Turkey ranked fifth with an estimated $1.66 billion in applicable imports.