India & Turkey Dropped from GSP Trade Preference Program

Courtesy of Sorini, Samet & Associates:

The Office of the U.S. Trade Representative (USTR) has announced that India and Turkey will be removed from the U.S. Generalized System of Preferences (“GSP”) program once statutory requirements for removal have been completed.

This includes a notice period of “at least” 60 days to Congress, and formal notification to both countries. At this time, SSA does not anticipate the notice period to be significantly longer than this. If your company currently sources products using the GSP program from India or Turkey, duty-free will remain in place during the notification period.

According to a statement from the Office of the U.S. Trade Representative, India’s removal is a result of significant market barriers placed on U.S. exports. India has failed to engage with the U.S. to address these barriers, according to the statement. However, this could mean that if India reverses course and engages with the United States, this removal could be reversed and India could rejoin the program.

Turkey, however, was graduated from the program due to its level of development. According to USTR, it met several key development indicators, including gross national income (GNI) per capita and decreased poverty levels.