Effective May 17, 2019 the US Trade Representative ended Turkey’s preferential trade status as it was determined the nation has reached an adequate level of economic development. Though this will stop goods from being allowed to enter the US duty free, the White House has reduced tariffs from 50% to 25% easing the burden somewhat. The review of Turkey’s status in the GSP (generalized system of preferences) came late last year when the US and Turkey were embroiled in diplomatic tensions.
There are 120 nations listed in the GSP, which was designed to boost economic development by removing tariffs and encouraging trade. According to Reuters, “The United States imported $1.66 billion in 2017 from Turkey under the GSP program, representing 17.7% of total US imports from Turkey.” Most imports came from vehicles, auto parts, jewelry, precious metals and stone articles.
President Trump has also sought to have Turkey removed from the list of developing country WTO (World Trade Organization) members who are exempt in certain specific cases from the section 201 safeguard TRQ (tariff-rate quotas) the U.S. imposed in January 2018 on crystalline silicon photovoltaic cells and large residential washing machines.
We will be watching this story to bring you more current information as it becomes available. Feel free to reach out to your Everglory representative with any questions or concerns you have.
