Turkey's GSP Eligibility in Question Due to Retaliatory Tariffs
Turkey, which exported about $1.66 billion in goods duty free through the Generalized System of Preferences last year, may be barred from the program after a review at the Office of the U.S. Trade Representative. The value of Turkish imports that come in duty free through GSP has increased by nearly 50 percent in five years, according to USTR data.
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USTR announced late Aug. 3 that it is initiating a review of Turkey's eligibility to participate in GSP because of Turkey's imposition of tariffs on $1.78 billion in U.S. imports, including alcohol (taxed at 70 percent), machines, cars, pumps, steel structures, plastics, cosmetics, chemicals and more. Those tariffs, which were announced in June, were in retaliation for U.S. tariffs on Turkish steel and aluminum exports.
The Turkish embassy did not respond to a request for comment. USTR said it decided to undertake the review because eligibility for GSP depends on fair market access. USTR said 17.7 percent of U.S. imports of Turkish goods are covered under GSP, and the most common products imported under the program from Turkey are vehicles and vehicle parts, jewelry and precious metals, and stone articles.