The United States has terminated Turkey’s designation as a beneficiary developing country under the Generalized System of Preferences (GSP) programme.

The move, which was first announced in March, came into effect with a proclamation in the Federal Register last Thursday (16 May) and eliminates the eligibility of thousands of products imported from that country for duty-free treatment from 17 May.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

While the GSP programme excludes most textile and apparel products exported to the US, the designation of a country as eligible for GSP sends a strong message that it is taking steps to improve worker and intellectual property rights.

The US says Turkey’s termination from GSP follows a finding that it is sufficiently economically developed and should no longer benefit from preferential market access to the United States market.

The United States designated Turkey as a GSP beneficiary developing country in 1975. An increase in Gross National Income (GNI) per capita, declining poverty rates, and export diversification, by trading partner and by sector, are evidence of Turkey’s higher level of economic development, it says.

See Also:

The Istanbul Textile and Apparel Exporters’ Association (IHKIB) says the impact on the industry from the loss of the benefit would be “minimal” and that the country “does not need preferential market access conditions in the US market.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

According to the re:source by just-style strategic sourcing tool, apparel exports from Turkey to the United States are subject to an average tariff rate of 14.4% for knitted apparel (HS chapter 61) and 10.8% for woven apparel (HS chapter 62).