Page 36 - TURKRptJun19

On May 3, the customs ministry released initial data on April’s foreign trade. The figures showed that the foreign trade deficit continued to contract, at a clip of 58% y/y in April to $2.83bn, while the January-April contraction was recorded at 69% y/y, producing a figure of $8.78bn.
The US on March 16 ended Turkey’s preferential trade treatment that allowed duty-free market entry for some exports, but at the same time halved its tariffs on imports of Turkish steel and aluminium to 25%. The termination of Turkey’s eligibility to participate in the Generalized System of Preferences (GSP) program was appropriate given the country’s level of economic development, the White House said. The move was signposted by the US Trade Representative (USTR) in early March. The review of Turkey’s status in the programme commenced last August when Ankara and Washington were in the middle of a diplomatic spat. The imposition of higher tariffs on imports of Turkish steel and aluminium was used by the US to economically pressure Turkey to force it to release Andrew Brunson, an American pastor detained and put on trial over terrorism charges he denied and which the White House said were contrived. Brunson was released last October. The higher tariffs of 50% have been restored to 25%, with the 25% tariff said to be necessary by the Trump administration because of a “threatened impairment of national security”. Turkey was one of 120 countries that participate in the GSP, the oldest and largest US trade preference programme, aimed at promoting economic development by eliminating duties. The US imported $1.66bn in 2017 from Turkey under the GSP. That was equivalent to 17.7% of total US imports. The top GSP import categories for Turkey were vehicles and vehicle parts, jewellery and precious metals.
36 TURKEY Country Report June 2019 www.intellinews.com