Donald Trump plans to end preferential trade treatment to India soon
Washington : India and Turkey are on the verge to lose preferential trade status granted by the United States of America, said the US trade chief's office on Monday.
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," the Office of the US Trade Representative said in a statement.
All these announcements made by the US trade chief are in accordance with the order passed by the US President Donald Trump.
The move comes with an explanation that India has failed to provide an assurance that it would allow required market access, while Turkey's economic stable condition makes it unqualified for the status.
Under the GSP program, "certain products" can enter the US duty-free if countries meet eligibility criteria including "providing the United States with equitable and reasonable market access."
India, however, "has implemented a wide array of trade barriers that create serious negative effects on United States commerce," the statement said.
It said Turkey, after being designated a GSP beneficiary in 1975, has meanwhile demonstrated a "higher level of economic development," meaning that it can be "graduated" from the program.