US ends Turkey’s GSP status

As of May 17, 2019 the USTR eliminated Turkey’s preferential trade status thanks to the nation achieving an arbitrary delegation of being sufficiently economically developed. Though this will end trade that was allowed to enter the US duty free, the White House reduced tariffs from 50% to 25% to somewhat ease the process.

The review of Turkey’s status in the GSP (generalized system of preferences) came late last year when the US and Turkey were embroiled in diplomatic tensions over Pastor Andrew Brunson who was accused of terrorism in Turkey alongside diverging interests in Syria and a rumored Turkish purchase of a Russian missile defense system.

There are 120 nations listed in the GSP, which was designed to boost economic development by removing tariffs and encouraging trade. According to Reuters, “The United States imported $1.66 billion in 2017 from turkey under the GSP program, representing 17.7%of total US imports from turkey.” Most imports came from vehicles, auto parts, jewelry, precious metals and stone articles.