Trump administration says India failed to meet certain conditions to stay in program, while Turkey no longer needs preferential trade access to the U.S. market.
The Trump administration intends to remove India and Turkey from the Generalized System of Preferences (GSP) program, which grants duty-free access to certain developing countries’ exports to the U.S.
The administration said India’s termination from the GSP is the result of the country’s “failure to provide the United States with assurances that it will provide equitable and reasonable access to its markets in numerous sectors.”
The U.S. began an eligibility review of India’s compliance with the GSP market access criterion in April 2018. India has imposed numerous trade barriers that “create serious negative effects” on U.S. commerce, the Office of the U.S. Trade Representative said.
To remain in the GSP, countries must respect arbitral awards in favor of U.S. citizens or corporations, combat child labor, respect worker rights, provide adequate intellectual property protection and provide the U.S. with reasonable market access.
Turkey’s proposed termination from the GSP follows a USTR finding that the country is sufficiently economically developed and requires no preferential market access to the U.S. market. The country has been enrolled in the GSP since 1975.
By statute, these changes may not take effect until at least 60 days after the notifications to Congress and the governments of India and Turkey and will be enacted by a presidential proclamation.