Turkey second top beneficiary of duty-free trade scheme with US

After seeing a significant rise in exports to the US under a preferential trade agreement over the last year and replacing Chinese suppliers due to raised tariffs, Turkey was removed from the duty-free trade scheme.

A recent report by the Coalition for Generalized System of Preferences has revealed that US companies have resorted to GSP countries including Turkey, India, Indonesia, Thailand and Cambodia to import goods duty free as the US administration imposed tariffs on a wide range of Chinese goods under Section 301 on March 23. The import figures in March and April demonstrate that India and Turkey were the top two countries benefiting from the GSP program after tariffs on China. Although US companies saved as much as $285 million in the first quarter of this year thanks to duty-free imports under the GSP program, President Donald Trump removed Turkey from the program, undermining efforts to reach $75 billion in bilateral trade volume.

Within the framework of the additional tariffs on China, the goods imported from this country under the GSP program were imposed with a 22 percent tariff, while other products US importers bought from China were levied with a 15 percent tariff. More than 75 percent of the goods China exports to the US within the framework of the GSP were listed in the additional tariffs in accordance with Section 301, an article in 1974 US trade law. The list includes a wide range of products – as many as 1,300 to be exact: meat and dairy products, chemicals, aquaculture, fresh fruits and vegetables, electric and electronic goods, textile products, pulses and grains.

Source: dailysabah.com

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