Explained: The Turkey and India Trade ‘Preferences’ Trump’s Threatening to Pull
India was the largest beneficiary of the program in 2017.
Photographer: Udit Kulshrestha/BloombergU.S. President Donald Trump says he intends to remove India and Turkey from a trading arrangement known as the “generalized system of preferences,” or GSP, which grants breaks on tariffs to developing nations to help boost their exports. The decades-old set-up, also offered by the European Union and 11 other countries, is intended to help poorer countries grow and improve living standards. It’s the latest target in Trump’s bid to shake up world trade.
It allows members of the World Trade Organization to lower tariffs on goods from certain countries by exempting them from the Most-Favored Nation principle, under which WTO members are otherwise obliged to treat imports from all other members equally.