US President Donald Trump terminated the designation of Turkey as a beneficiary nation under its generalized system of preferences (GSP) in a May 16 proclamation, while the suspense regarding India’s status continued. Turkey’s termination becomes effective today. On March 4, President Trump announced his intention to terminate India’s GSP designation. The exemption for Turkey from application of the safeguard measures on crystalline silicon photovoltaic (CSPV) products and large residential washers is also removed, effective May 17, President Trump proclaimed. The United States had designated Turkey as a GSP beneficiary developing country in 1975.Though the 60-day notice period for India ended on May 3, the White House or the US Trade Representative (USTR) is yet to issue a statement on the fate of India’s status, according to global newswires. GSP 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. A section of the media reported that after the recent India visit of US commerce secretary Wilbur Ross, the US Government has agreed not to take a formal decision on India’s termination till the ongoing Indian elections are over. 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 March 4 USTR statement.
source – Fibre2Fashion
