Left Menu
Development News Edition

UPDATE 2-Turkey says U.S. scrapping trade deal contradicts goals

Reuters | Updated: 17-05-2019 16:55 IST | Created: 17-05-2019 16:23 IST
UPDATE 2-Turkey says U.S. scrapping trade deal contradicts goals
Image Credit: Pixabay

The U.S. decision to end its preferential trade agreement with Turkey contradicts their $75 billion bilateral trade target, Trade Minister Ruhsar Pekcan said on Friday, but welcomed Washington's move to halve tariffs on steel imports. The White House said on Thursday it was terminating Turkey's eligibility for the Generalized System of Preferences (GSP) programme, given its level of economic development. It also halved tariffs on Turkish steel imports to 25%.

"Lowering the tariffs to 25% from 50% is positive, but we expect the lifting of all obstacles to bilateral trade," Pekcan wrote on Twitter, saying they affected U.S. companies, too. She said she work would continue to boost the trade volume. The United States imported $1.66 billion worth of goods in 2017 from Turkey under the GSP, or 17.7 percent of total imports from Turkey, the U.S. Trade Representative website said. Imports include vehicles, vehicle parts, jewellery and precious metals.

The United States had begun reviewing the NATO ally's status in the programme last August when the two countries were embroiled in a diplomatic row. Ankara had been hopeful that Washington would not go ahead with the move, saying it ran contrary to the two countries' trade goals. Turkey was one of 120 countries that participate in the GSP, the oldest and largest U.S. trade preference programme. It aims to promote economic development in beneficiary countries and territories by eliminating duties on thousands of products.

During last year's spat, President Donald Trump imposed higher steel tariffs to put pressure on Turkey to release an American pastor detained on terrorism charges. The pastor was released last October, but the friction in part sparked a currency crisis that tipped Turkey's economy into recession last year, knocking nearly 30 percent off the lira's value over the year as a whole.

LIRA UNDER PRESSURE The lira has weakened as much as 15 percent further this year, partly from concerns about a re-run of the Istanbul mayoral election and the risk of U.S. sanctions. It fell again on Friday after the latest U.S. moves.

The currency stood at 6.0600 against the dollar at 1000 GMT, easing from a close of 6.0475 on Thursday. "The U.S. decisions were negatively priced, but the decisions do not have a clear economic impact," said a treasury desk trader at one bank. "Markets will monitor political statements regarding relations between the two countries, given the risks that they have recently entailed."

Ties between Ankara and Washington remain tense over disagreements ranging from Turkey's planned purchase of a Russian S-400 missile defence system, which could trigger sanctions, to diverging interests in Syria. U.S. officials say Turkey's planned purchase of the S-400s would jeopardise its role in building F-35 fighter jets as well as its purchase of the aircraft, which Washington says would be compromised by the Russian system.

Turkey wants the United States to extradite Fethullah Gulen, a Pennsylvania-based Muslim cleric who Turkish authorities say masterminded the 2016 coup attempt against Erdogan in which 250 people were killed. Gulen denies the allegation.


TRENDING

OPINION / BLOG / INTERVIEW

Rethinking Rural Livelihoods in the Times of COVID-19

The reverse migration caused by COVID 19 pandemic has put an additional burden of about one crore people on Indian villages particularly in the states of Uttar Pradesh, Bihar, Bengal and Odisha. Besides increasing the risk of spreading the ...

‘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. ...

Videos

Latest News

COVID-19: Odisha reports highest single-day spike with 129 new cases

Odisha registered its highest single-day spike in COVID-19 cases on Sunday after 129 more people, including 119 returnees from other states, tested positive for the infection, a health department official said. The total number of coronavir...

Diplomatic, military talks on to resolve border row with China: Shah

Union Home Minister Amit Shah Sunday said diplomatic and military-level dialogues are going on with China on the current border row and he was hopeful that the issue will be resolved. Also, in an obvious warning to Pakistan, Shah said India...

Migrant worker dies on Shramik train in UP, co-passengers travel with body to WB

A 50-year-old migrant worker died on-board a Shramik Special train from Rajasthan to West Bengal, triggering panic among other passengers who travelled with the body for more than eight hours, police said on Sunday. Buddha Parihar, who hail...

Centre working to reduce pendency in cases & vacancies in subordinate judiciary: Law Min official

The central government is working towards reducing the pendency of cases in courts as well as vacancies in the subordinate judiciary, a senior Law Ministry official said on Sunday. According to G R Raghavender, a joint secretary in the Law ...

Give Feedback