The US intends to deprive India and Turkey of trade benefits under the General system of preferences | FREE NEWS

The US intends to deprive India and Turkey of trade benefits under the General system of preferences

On the instructions of the US President Donald Trump, Washington intends to deprive India and Turkey of trade benefits under the US General system of preferences /GSP/. The US representative for trade negotiations Robert Lighthizer announced about it.

As stated in the statement of the Office of the US trade representative, the decision on India is due to the fact that it could not provide fair and reasonable conditions for access of the US goods to many of its markets. And Turkey, whose economy is already sufficiently developed, should not enjoy preferential access to the us market, the Department noted.

According to the US law, the decision to withdraw trade benefits may enter into force not earlier than 60 days after the notification of the Congress and the governments of the countries concerned, as well as subject to the publication by the US President of the relevant communiqué.

Recall that the US began to consider the abolition of trade benefits for India in April 2018. According to the office of the trade representative, India has established trade barriers for the US goods, which had a serious negative impact on the US business. Although the two governments had been in close contact on the relevant issues, India had not been able to take the necessary measures.

The office of the trade representative also noted that the level of economic development of Turkey has grown significantly, increased per capita income, decreased the share of the poor, exports have become more diversified, so this state should not continue to enjoy trade benefits under the GSP, acting in relation to developing countries.

The General system of preferences is an international trading system of preferential customs tariffs on goods exported by developing countries, which are established by developed States. It involves the reduction of duties or full exemption from them.