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United States to Terminate GSP Designation for India and Turkey

In a press release dated March 4, 2019, the Office of the United States Trade Representative (USTR) announced “the United States intends to terminate India’s and Turkey’s designation as beneficiary developing countries under the Generalized System of Preferences (GSP) program because they no longer comply with the statutory eligibility criteria.”

The USTR continued, “India’s termination from GSP follows its failure to provide the United States with assurances that it will provide equitable and reasonable access to its markets in numerous sectors.” India has implemented a variety of trade barriers that have had negative effects on United States commerce.

Turkey is losing its GSP designation due to its higher level of economic development. The USTR stated that Turkey has experienced “an increase in Gross National Income (GNI) per capita, declining poverty rates, and export diversification.”

According to the USTR, GSP is the oldest U.S. trade preference program.  It is designed to provide opportunities for many of the world’s poorest countries to help grow their economies utilizing trade. Under the program, certain products are allowed to enter the United States duty free. Once GSP designation is terminated, these products become dutiable under the General, Column 1 duty rate.

These GSP changes will be enacted by a Presidential Proclamation and will not take effect until at least 60 days after a notification to Congress and the governments of India and Turkey.

MIQ Logistics will provide updates regarding changes to ACE as they are made available by U.S. Customs and Border Protection.

For more information, please contact your local MIQ Logistics representative.