Following the direction of US President Donald Trump, Washington expects to snip privileged trade status approved to India and Turkey, according to the trade Chief office of US.
The moves come as the China and US attempt to make a resolution through bargaining from a costly trade war between the two countries which is part of the Trump administration’s efforts for addressing what it views as preferential commercial relationships with other states.
The Office of the US Trade Representative told in a statement, “ Washington intends to terminate India’s and Turkey’s designations as beneficiary developing countries under the Generalized System of Preferences (GSP) program because they no longer comply with the statutory eligibility criteria”.
India has failed to serve promises that it would permit required market access, while Turkey is “ sufficiently economically developed” that it no longer licenses, it included.
Under the GSP program, “ certain products” can be categorized the US tariff-free countries meet the eligibility criteria including. “providing the United States with equitable and reasonable market access. ”
The statement told, however India “ has implemented a wide array of trade barriers that create serious negative effects on United States commerce”.
It claimed after being categorized a GSP beneficiary in 1975, Turkey has meanwhile exhibited a “ higher level of economic development”, mentioning that it can be “graduated ” from the program.
The changes cannot be enforced at least 60 days following the notification of Congress as well as the affected countries – a proceeding the US President started with the letters to the speaker of the House of Representatives and the President of the Senate.
The US President wrote in a letter released by the White House, “ I will continue to assess whether the government of India is providing equitable and reasonable access to its markets, in accordance with the GSP eligibility criteria”.