U.S. cancels Turkey’s GSP treatment while reducing soil and steel import tariffs
Jun. 10, 2019
The United States seems to be well versed in the idea of "playing a stick to a date", which is reflected in its relationship with Turkey. According to reports, on May 16, local time, the United States announced the cancellation of the Turkish GSP treatment, while reducing the Turkish steel import tariffs to 25%.
The White House said on the 16th that the United States will cancel its GSP treatment in view of Turkey's economic development. It is reported that the GSP system refers to an international trade system in which developed countries unilaterally grant preferential tariff treatment to manufactured goods and semi-finished products imported from developing countries. It is based on the MFN rate and further tax reduction or full tax exemption. Preferential treatment.
The report said that the decision will take effect on May 17.
In fact, as early as last August, when the two countries had diplomatic disputes over the case of the American pastor Brunson, the United States had already considered canceling this treatment in Turkey. It is reported that after the attempted coup in July 2016, the Turkish government arrested Brunsen in October of the same year on suspicion of “spying” and “crime for terrorist organizations”. The United States has repeatedly negotiated with the Turkish side on the release of Brunson, but little progress has been made.
At the beginning of March this year, the Office of the US Trade Representative issued a statement saying that Turkey’s economic development level is already high and should no longer continue to enjoy the GSP treatment applicable to developing countries. However, Turkey has always hoped that the United States will not finally make this decision.
Of course, the United States has not forgotten to "play a stick for a date." The White House also announced in the statement that the tariff on steel imported from Turkey will be reduced from 50% to 25%.
Last August, in order to force Turkey to release Brunson, the United States increased the import tariffs on Turkish steel and aluminum products to 50% and 20% respectively. This move by the United States has caused a sharp depreciation of the Turkish currency. Since then, relations between the two countries have been very tense.