India & Turkey Removed from GSP

The Trump administration is finishing up meetings with India and Turkey that will ultimately end with both countries being removed from GSP. The Generalized System of Preference (GSP) is a program that allows least developed countries to send some of their products to the United States duty free.

Turkey will be removed from the program due to rapid growth of the Turkish economy since they were first admitted into the program over 40 years ago. Turkey has already been removed from similar programs with other developed nations.

India is being removed due to high tariffs on goods imported into India from the United States. Indian exports to the US are valued at around $5.6 billion dollars annually. According to India’s commerce secretary the duty benefit is only $190 million annually so there is no real monetary benefit to the country therefore they do not plan to retaliate.

The administration has not determined a hard date for when this will take place however we urge you to plan accordingly – you do not want to have an order on the water when the duties go into effect.

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