Dear Valued Customer:
According to U.S. Trade Representative Robert Lighthizer, President Donald J. Trump directed him to announce that the United States 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.
Under the United States GSP program, certain products can enter the United States duty-free if beneficiary developing countries meet the eligibility criteria established by Congress. GSP criteria include, among others, respecting arbitral awards in favor of United States citizens or corporations, combating child labor, respecting internationally recognized worker rights, providing adequate and effective intellectual property protection, and providing the United States with equitable and reasonable market access. Countries can also be graduated from the GSP program depending on factors related to economic development.
India’s termination from GSP follows its failure to provide assurances of equitable and reasonable access by the United States to its markets in numerous sectors.
Turkey’s termination from GSP follows a finding that it is sufficiently economically developed and should no longer benefit from preferential access to the United States market.
By statute, these changes may not take effect until at least 60 days after the notifications to Congress and the governments of India and Turkey and will be enacted by a Presidential Proclamation.
For more information on GSP, visit the USTR website here.
Thank you for your attention and cooperation. If you have any questions, please contact your nearest JJB representative.
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