U.S. ends GSP status for India and Turkey
This Monday, the administration announced it will remove India and Turkey from the Generalized System of Preferences (GSP). GSP is a status given to developing countries to grant them easier access to US markets, including allowing the import of many goods duty-free.
This announcement threatens the GSP duty-free entry status of nearly $5.6 billion in Indian products. The U.S. and India have a thriving trade relationship, worth $126 billion in 2017.
The U.S. administration has indicated that they are “not assured that [India] will provide equitable and reasonable access to markets.” This update follows an investigation by the United States Trade Representative (USTR) into the trade practices of several GSP eligible governments, who’s programs were accused of producing unfavorable and unfair trade barriers.
In a separate letter to Congress, the administration announced the ending of Turkey’s GSP status as well. The letter indicated that Turkey is no longer considered a developing country and is no longer eligible for GSP status.
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