WASHINGTON (Reuters) - The United States intends to end Turkey’s preferential trade treatment under a programme that allowed some exports to enter the United States duty free, the U.S. Trade Representative’s Office said on Monday.
Turkey is no longer eligible to participate in the Generalized System of Preferences programme because it “is sufficiently economically developed,” USTR said in a news release.
USTR said in August it was reviewing Turkey’s eligibility in the programme after the NATO ally imposed retaliatory tariffs on U.S. goods in response to American steel and aluminium tariffs.
Removing Turkey from the programme would not take effect for at least 60 days after notifications to Congress and the Turkish government, and it will be enacted by a presidential proclamation, USTR said. Trump notified Congress on Monday.
Turkey is 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.
The United States imported $1.66 billion in 2017 from Turkey under the GSP programme, representing 17.7 percent of total U.S. imports from Turkey, according to USTR’s website.
The leading GSP import categories were vehicles and vehicle parts, jewellery and precious metals, and stone articles, the website said.
Reporting by Eric Beech; Editing by Peter Cooney