India's Commerce Department said it had "offered resolution on significant U.S. requests" for better market access, but they were not accepted. The statement was issued June 1, after an evening announcement from the U.S. the day before that India would no longer receive Generalized System of Preferences program benefits after June 5 (see 1905310072). "India, like the US and other nations shall always uphold its national interest in these matters. We have significant development imperatives and concerns and our people also aspire for better standards of living. This will remain the guiding factor in the Government’s approach," the government said. But it said it will continue to work intensively with the U.S. to resolve economic issues to mutual benefit.
India will be removed from the Generalized System of Preferences on June 5, because President Donald Trump "determined that India has not assured the United States that India will provide equitable and reasonable access to its markets." The announcement came just after 8 p.m. on May 31. The end of GSP eligibility and removal of India's developing country status also means India will be subject to safeguard duties on solar cells and washing machines as of June 5.
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Turkey is now subject to the Section 201 safeguard tariffs on solar cells and residential washers, CBP said in a CSMS message. Turkey is no longer a beneficiary developing country under the Generalized System of Preferences and is therefore subject to the tariffs (see 1905170004), effective May 17, CBP said.
Many U.S. importers "tend to just assume things are on the up and up" with their vendors, said Pete Mento, vice president for global trade and managed services at Crane Worldwide Logistics. Mento, who conducted a webinar on free trade deals May 24, said that's a mistake. Mento said often "people are claiming free trade agreements simply because it was flown to the U.S." from a free-trade partner country. "You gotta be able to prove your stuff qualifies. Because if you can’t prove it, the government’s going to come down on you like the hammer of the gods," he said.
CBP is still waiting for some details on the termination of Turkey's eligibility for benefits under the Generalized System of Preferences, a CBP official said during a May 23 conference call. Asked about the specific effective date for goods being entered from Turkey and why there has not been a CSMS message, a CBP official said "we don't have the confirmed information for that." CBP sometimes has to work "behind the curve" when reacting to executive orders, the official said. President Donald Trump announced that Turkey would no longer be part of GSP program effective May 17 (see 1905170004). Annex A of the proclamation, published in the May 21 Federal Register, says the removal of Turkey from tariff schedule provisions on GSP takes effect "for goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on May 17, 2019 ... ."
The Coalition for GSP criticized Turkey’s removal from the Generalized System of Preferences program in a statement following the White House's May 16 announcement, saying the move will impose “tens of million of dollars in taxes annually.” President Donald Trump said Turkey no longer qualifies as a developing country, which means Turkey will also be subject to Section 201 safeguards on solar cells and washing machines. The removal of Turkey from GSP takes effect May 17. In a separate proclamation, the White House announced that the 50 percent Section 232 tariff on Turkish steel in place since August will return to 25 percent on May 21
Turkish exports are no longer eligible for the Generalized System of Preferences, and Turkish solar cells and residential washers are also now subject to safeguard tariffs. The changes took effect May 17.
Commerce Secretary Wilbur Ross, speaking May 7 in New Delhi, chided India for its high tariffs and non-tariff barriers, blaming them for the trade deficit with the U.S. He did not acknowledge the termination of the Generalized System of Preferences benefits for India. Although the administration warned India could be terminated from the GSP program as of May 4, so far, that has not happened. However, Ross did tell a local TV station, according to Reuters, that retaliation for the end of GSP would be inappropriate.