Left Menu
Development News Edition

Trump admin removes 'economically developed' Turkey from preferential trade deal

Devdiscourse News Desk | Washington DC | Updated: 17-05-2019 06:56 IST | Created: 17-05-2019 06:36 IST
Trump admin removes 'economically developed' Turkey from preferential trade deal
The United States imported $1.66 billion in 2017 from Turkey under the GSP program, representing 17.7 per cent of total U.S. imports from Turkey. Image Credit: Pixabay

The United States on Thursday terminated Turkey's preferential trade treatment that allowed some exports to enter the country duty-free, but it has halved its tariffs on imports of Turkish steel to 25%. The White House said it was appropriate to terminate Turkey's eligibility to participate in the Generalized System of Preferences (GSP) program, based on its level of economic development. The decision is effective May 17, it added.

The U.S. Trade Representative (USTR) in early March said Turkey was no longer eligible to participate because it "is sufficiently economically developed." It had begun reviewing the NATO ally's status in the program last August when the two countries were embroiled in a diplomatic row. But Ankara had been hopeful that Washington would not go ahead with the decision, saying it would be against the $75 billion targets for mutual trade laid out by President Donald Trump and Turkish President Tayyip Erdogan.

During last year's spat, Trump had imposed higher tariffs on imports of Turkish steel and aluminium to put economic pressure on NATO member Turkey to force it to release Andrew Brunson, an American pastor who was detained there over terrorism charges. Brunson was released last October. Trump's move had sent the Turkish lira into a tailspin. Since then, the ties between the two countries have remained tense over disagreements ranging from Ankara's planned purchase of a Russian missile system to diverging interests in Syria.

In a subsequent statement on Thursday, the White House said it was reducing the 50% tariff, doubled last August, to 25%. "Maintaining the existing 25% tariff on most countries is necessary and appropriate at this time to address the threatened impairment of the national security," it said. Turkey was one of 120 countries that participate in the GSP, the oldest and largest U.S. trade preference program. It aims to promote economic development in beneficiary countries and territories by eliminating duties on thousands of products.

The United States imported $1.66 billion in 2017 from Turkey under the GSP program, representing 17.7 per cent of total U.S. imports from Turkey, according to USTR's website. The leading GSP import categories were vehicles and vehicle parts, jewellery and precious metals, and stone articles, the website said.


TRENDING

OPINION / BLOG / INTERVIEW

‘Discounted Deaths’ and COVID 19: Anthropology of Death and Emotions

Death is a social event rather than the mere cessation of biological functions. As seen by anthropologists, death is not just physical but intensely social, cultural, and political....

Indigenous knowledge of communities a must for maximizing impact of community work

Generally, it has been observed that the majority of the academicians in higher education institutions neglect the wisdom of community people and throw their weight around thinking that they know everything and the community knows nothing. ...

In rebuking FBR, Pakistan’s courts take a stand for public health

The system, if implemented effectively, will allow Pakistans revenue service to combat the illicit trade in tobacco products and potentially add hundreds of millions of dollars to the states budget each year. ...

Dissecting how COVID-19 is catalyzing the trajectory of New World Order

The ensuing pandemic of COVID-19 has hit the globalization in two ways firstly, shrinking the importance of globalization as an economic force by curtailing mobility through worldwide lockdowns, and secondly, rejuvenating the idea of indig...

Videos

Latest News

India traversing on path to 'victory' against COVID-19: PM in open letter to countrymen on first anniv of his second term

Prime Minister Narendra Modi marked the first anniversary of his second term on Saturday by writing an open letter to his countrymen, asserting that India has started traversing on the path to victory in its long battle against COVID-19 whi...

'I can't breathe' protests spread across America after Minneapolis killing

Thousands of protesters stormed the perimeter of Barclays Center in New York as protests spread across the United States over the killing of George Floyd, a Minneapolis black man who died after being pinned by the neck under a white police ...

Civil unrest flares again after Minneapolis policeman charged with murdering George Floyd

The white former Minneapolis police officer shown in video footage using his knee to pin an unarmed black mans neck to the street was charged with murder on Friday in the mans death, an incident that has unleashed four nights of violent pro...

TSM's Fortnite team fines ZexRow for profane rant

Team SoloMid fined Anthony ZexRow Colandro one months salary on Friday in response to his profane rant after winning the Week 1 championship in the Ninja Battles Fortnite series a day earlier. ZexRow, 19, had joined Jonathan Calc Weber and ...

Give Feedback