India and Turkey to Lose GSP Eligibility

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India and Turkey to Lose GSP Eligibility

The Office of the United States Trade Representative (USTR) has announced the removal of India and Turkey from the Generalized System of Preferences (GSP). GSP is a program that allows developing countries to export goods to the United States without having to pay tariffs. The President must notify Congress at least 60 days prior to the termination of either country from the GSP program.

India’s termination from GSP is due to its failure to meet the programs requirements to provide reasonable and equitable access to its markets. India is the largest GSP beneficiary country with over 25% of the value of GSP imports into the U.S. Several domestic markets (dairy, medical devices, etc.) have complained that India does not allow reasonable and equitable market access for U.S. goods. In 2018, the USTR determined that India has failed this condition of the agreement.

The USTR determined that Turkey’s economic development permits its graduation from the GSP program. Turkey and India have participated in the program since its inception in 1976. If you have any questions, please contact your Krieger Worldwide representative.

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