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USTR to Review Turkey’s GSP Eligibility in Response to Retaliatory Tariffs

Tuesday, August 07, 2018
Sandler, Travis & Rosenberg Trade Report

USTR has launched a review of the eligibility of Turkey to participate in the Generalized System of Preferences based on concerns related to its compliance with the GSP market access criterion. This criterion, one of 15 defined by Congress in the statute authorizing the GSP program, covers the extent to which beneficiary countries have assured the U.S. reasonable and equitable access to their markets.

Specifically, USTR believes that Turkey’s imposition of additional tariffs on $1.78 billion worth of U.S. imports in response to the United States’ additional tariffs on imports of steel and aluminum products may violate the GSP’s market access criterion. Deputy U.S. Trade Representative Jerry Gerrish expressed hope that “Turkey will work with us to address the concerns that led to this new review of their duty-free access to the United States.” USTR notes that a public hearing and comment period for this review will be announced in an upcoming Federal Register notice.

The U.S. imported $1.66 billion from Turkey under the GSP program last year, representing 17.7 percent of total U.S. imports from that country. The leading GSP import categories were vehicles and vehicle parts, jewelry and precious metals, and stone articles.

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