MEMO TO CLIENTS ISSUE 19-005 – March 15, 2019

U.S. Terminates GSP Privilege for India and Turkey
The Office of the U.S. Trade Representative (USTR)
has announced that the United States will
terminate Generalized System of Preferences
(GSP) privileges for India and Turkey. The USTR
explained that India had been subject to a
compliance review for its trade barriers. India has
failed to provide assurances that the criteria
regarding fairness of imports into its market would
be met.
Turkey is being removed from GSP eligibility
because it has moved to a higher level of economic
development. Turkey has also shown an increase in
its Gross National Income (GNI) and a decline in its
poverty rate. GSP is for developing companies and
with Turkey’s economic growth, the USTR has
determined that Turkey has passed the threshold
and no longer qualifies.
The changes recommended by the USTR cannot
take place until at least 60 days after notification to
Congress and the governments of India and Turkey.
The notification will be made in the form of a
presidential proclamation.
A copy of the notice issued by the USTR can be
found on their website. We are currently
monitoring the situation and awaiting the
Presidential Proclamation which will set the date
for the changes to be made.
Latest on China Section 301 Negotiations
During his testimony at the Senate Finance
Committee hearing, U.S. Trade representative
Robert Lighthizer was asked if the China
negotiations would produce a deal by the end of
March. He responded that they do not know
when a deal will be determined. He did add that
something will happen, either good or bad. He
reported that China is making concessions with
the hope of lifting the 301 tariffs. There is no time
frame for the negotiations, but he added that he
hoped they are in the final weeks of reaching an
agreement. Lighthizer also stated that there are
still major issues to be completed before an
agreement can be made.