You are here: Home » PTI Stories » National » News
Business Standard

Trump terminates designation of Turkey as GSP beneficiary nation

Press Trust of India  |  Washington 

US in a proclamation Thursday terminated the designation of as a beneficiary nation under its (GSP) while the suspense on continued.

is the largest and oldest US trade preference programme and is designed to promote economic development by allowing duty-free entry for thousands of products from designated beneficiary countries.

The termination of Turkey, a NATO ally, becomes effective May 17. On March 4, Trump announced that the US intends to terminate India's designation as a beneficiary developing country under the programme. The 60-day notice period ended on May 3.

There was no word either from the or the US (USTR) on the fate of India's status as a beneficiary nation.

For all practical purposes, it can come any moment now, but some unconfirmed reports said that after the recent visit of Wilbur Ross, the has agreed not to take a formal decision on India's termination from GSP at least till the ongoing elections are over.

In recent weeks, several top US lawmakers and industry representatives have written to the to pause their decision on it till the new government is formed after the results of the elections are declared on May 23. But there has been no word from the on this so far.

Trump, in the proclamation issued Thursday, said he has determined "the designation of as a beneficiary developing country is terminated, effective May 17, 2019."

Further, the exemption for from application of the safeguard measures on CSPV products and large residential washers is removed, effective May 17, 2019, he proclaimed.

"Consistent with my determination that it is appropriate to terminate the designation of Turkey as a beneficiary developing country under the GSP, effective May 17, 2019, I have determined to remove it from the list of developing country WTO Members exempt from application of the safeguard measures on CSPV products and large residential washers," Trump said in his proclamation.

The had designated Turkey as a GSP beneficiary developing country in 1975. 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, according to a USTR statement on March 4.

Under the GSP program, certain products can enter the duty-free if beneficiary developing countries meet the eligibility criteria established by the

GSP criteria include, among others, respecting arbitral awards in favour of citizens or corporations, combating child labour, respecting internationally recognized worker rights, providing adequate and effective intellectual property protection, and providing the US with equitable and reasonable market access.

Countries can also be graduated from the GSP program depending on factors related to economic development.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, May 17 2019. 07:30 IST
RECOMMENDED FOR YOU