GPS about to end for Turkey and India

The USTR stated on Monday March 4 that GSP status of Turkey and India would end as they “no longer comply with the statutory eligibility criteria”, the decision being
made by the President Trump. The Representative’s Office explained in the news release that while India was being terminated from the program due to it “failing to provide the US with assurances that it will provide equitable and reasonable access to its markets in numerous sectors”, Turkey was found to be “sufficiently economically developed”. USTR further explicated, “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”. In her twitter post on March 5, Turkish Trade Minister Ruhsar Pekcan, has responded to the decision stating; “Unfortunately, this decision conflicts with our mutual objective of reaching a bilateral trade volume of $75 billion, that had been announced by both governments. The decision will also negatively affect US SMEs and manufacturers.” Pekcan also imparted that the value of US imports amounted to $20.9 billion under its GSP scheme in the first 11 months of 2018; with exports amounting to $1.74 billion, Turkey was the fifth largest supplier to US with a share of 8.2%. Turkey was designated as a beneficiary in 1975. The change may come in effect earliest 60 days following the notification of Congress and the governments of India and Turkey.