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United States: GSP-eligibility review of Turkey

United States: GSP-eligibility review of Turkey

The Office of the United States Trade Representative (USTR) in August 2018 announced it is reviewing the eligibility of Turkey to participate in the Generalized System of Preferences (GSP) program based on concerns related to Turkey’s compliance with the GSP market-access criterion (one of the 15 criteria defined by Congress in the statute authorizing the GSP program, and specifically concerning the extent to which beneficiary countries provide the United States with reasonable and equitable access to their markets).

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The USTR release includes a notation that Turkey imposed additional tariffs on $1.78 billion of U.S. imports only (not on other trading partners) and that the USTR launched this GSP-eligibility review of Turkey based on concerns related to Turkey’s compliance with the GSP market-access criterion.

KPMG observation

The Generalized System of Preferences (GSP) program aims to assist developing countries by offering free or reduced tariffs into the U.S. market.  The program was renewed in March 2018 and is currently set to expire at the end of 2020.

U.S. importers currently pay zero ($0) duty on many qualifying imports from Turkey under the GSP program.  Because Turkey has implemented retaliatory tariffs on U.S. products, it calls into question whether Turkey is providing U.S. companies proper access to its markets, thus could affect how the United States government views Turkey’s eligibility under the GSP program.  

 

For more information on this topic or to learn more about KPMG’s Trade & Customs Services, contact:

Doug Zuvich
Partner, Global Practice Leader
T: 312-665-1022
E: dzuvich@kpmg.com

Andy Siciliano
Partner, National Practice Leader
T: 631-425-6057
E: asiciliano@kpmg.com

Irina Vaysfeld
Principal
T: 212-872-2973
E: ivaysfeld@kpmg.com

Robert Waldrop
Principal
T: 212-954-8117 
E: rwaldrop@kpmg.com

Christopher Young
Principal
T: 312-665-3229
E: christopheryoung@kpmg.com

George Zaharatos
Principal
T: 404-222-3292
E: gzaharatos@kpmg.com

John L. McLoughlin
Principal, East Coast Leader
T: 267-256-2614
E: jlmcloughlin@kpmg.com

Luis (Lou) Abad
Principal, WNT
T: 212-954-3094
E: labad@kpmg.com

Amie Ahanchian
Managing Director
T: 202-533-3247
E: aahanchian@kpmg.com

Gisele Belotto
Managing Director
T: 305-913-2779
E: gbelotto@kpmg.com

Andy Doornaert
Managing Director
T: 313-230-3080
E: adoornaert@kpmg.com

Jessica Libby
Managing Director
T: 612-305-5533
E: jlibby@kpmg.com

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