President Trump Announces End of GSP for India, Turkey

On Monday, March 4th, 2019, President Trump announced that India and Turkey’s Generalized System of Preferences (GSP) status would be revoked.

The decision threatens the GSP duty-free entry status of nearly $5.6 billion Indian goods. In a letter addressed to Congress, Trump explained that he is “taking this step because, after intensive engagement between the United States and the Government of India, I have determined that India has not assured the United States that it will provide equitable and reasonable access to the markets of India.”

Trump’s statements come on the heels of a 2018 USTR investigation into the trade and fairness practices of several GSP eligible governments, following various complaints from the U.S. dairy and medical sectors which claimed that the program yielded unfavorable and unfair market barriers in India.

A separate letter to Congress revealed an end to Turkey’s GSP status as well. Turkey’s GSP status is being revoked as it no longer meets the criteria to be considered a developing country.

Both India and Turkey will not lose their GSP status until 60 days after the White House issues an official notice to Congress and the Indian and Turkish governments.

Shapiro will continue to monitor the situation and provide status updates as they become available.