Trump Informs Congress about Intent to Terminate GSP Designation of India Turkey

US President Donald Trump on Monday informed the US Congress about his intent to terminate the designation of India and Turkey as a beneficiary developing country under the Generalised System of Preferences (GSP) programme.

“New Delhi had failed to assure America that it would provide equitable and reasonable access to its markets in numerous sectors,” Trump said in a letter to the Speaker of the US House of Representatives, Nancy Pelosi.

"I will continue to assess whether the Government of India is providing equitable and reasonable access to its markets, in accordance with the GSP eligibility criteria," Trump added.

In a separate letter, Trump also informed the Congress of his intent to terminate the GSP beneficiary designation of Turkey.

This was important as the economy of Turkey had improved a lot in the last four-and-a-half decades, he said.

"Increases in Gross National Income per capita, declining poverty rates and export diversification by trading partner and by sector are all evidence of Turkey's increased level of economic development. In addition, Turkey has graduated from other developed countries' GSP programs due to its increase in economic development or through reciprocal arrangements," Trump argued.

This could be a major setback in India-US bilateral relationship, in particular in the arena of trade and economy.

"By statute, these changes may not take effect until at least 60 days after the notifications to Congress and the governments of India and Turkey, and will be enacted by a Presidential Proclamation," the USTR said.

"India has implemented a wide array of trade barriers that create serious negative effects on United States commerce. Despite intensive engagement, India has failed to take the necessary steps to meet the GSP criterion," the USTR argued.