U.S. terminates Turkey's preferential trade agreement, reduces tariffs on steel

aerial view of containers on pier

May 17, 2019 - In a statement released Thursday, the White House terminated Turkey’s preferential trade treatment that allowed some exports to enter the country duty-free, but it has halved its tariffs on imports of Turkish steel to 25%.

The White House said it was appropriate to terminate Turkey’s eligibility to participate in the Generalized System of Preferences (GSP) program, based on its level of economic development. The decision is effective May 17, it added.

The U.S. Trade Representative (USTR) in early March said Turkey was no longer eligible to participate because it “is sufficiently economically developed.” It had begun reviewing the NATO ally’s status in the program last August when the two countries were embroiled in a diplomatic row.

In a subsequent statement, the White House said it was reducing the 50% tariff, doubled last August, to 25%. “Maintaining the existing 25% tariff on most countries is necessary and appropriate at this time to address the threatened impairment of the national security,” it said.

BDP International is closely working with stakeholders to ensure we are supporting our customers with this change in regulation. We will continue to keep you apprised of updates as we receive them. 

As always, should you have any questions or concerns, please reach out to your local BDP representative. 

Source: Excerpted from Reuters;  WhiteHouse.gov