Turkey says end of US preferential trade deal contradicts $75bn target

Turkish Trade Minister Ruhsar Pekcan says the United States' move to terminate its preferential trade agreement with Turkey will be against the $75-billion target for mutual trade laid out by the two countries.

In a post on her Twitter account on Friday, the minister, however, welcomed Washington’s decision to halve its tariffs on the imports of Turkish steel.

The White House announced on Thursday that it was terminating the preferential trade treatment that allowed some exports to enter the country duty-free, but it has decreased its tariffs on imports of Turkish steel to 25 percent.

The White House said it was appropriate to terminate Turkey's eligibility to participate in the Generalized System of Preferences (GSP) program, based on its level of economic development. The decision is effective on May 17, it added.

“Lowering the tariffs to 25% from 50% is positive, but we expect the lifting of all obstacles to bilateral trade,” Pekcan said, warning that they affected US companies, too.

"Moreover, the removal of Turkey from the GSP does not comply with our endeavors to achieve 75 billion US dollar bilateral trade volume," she added.

The Turkish minister added that work would continue to increase the trade volume between Ankara and Washington.

Established in 1974 and having covered 120 countries, including Turkey, the GSP is the largest and oldest US trade preference program. It allows “certain products” to enter the US free of tariffs, given that the countries exporting them meet the criteria such as “providing the US with equitable and reasonable market access.”

SS