US President Donald Trump in his recent proclamation terminated Turkey as a beneficiary nation under Generalised System of Preferences (GSP). Largest and oldest US trade preference programme, GSP is designed to promote economic development by allowing duty-free entry for thousands of products from designated beneficiary countries. The termination of Turkey, a NATO ally, became effective from May 17, 2019. Trump also removed the exemption for Turkey from application of the safeguard measures on CSPV products and large residential washers is removed.

The United States had designated Turkey as a GSP beneficiary developing country in 1975. This had helped the country achieve a higher level of economic development including an increase in its Gross National Income (GNI) per capita, decline in poverty rates and export diversification. The GSP program allows certain products to enter the United States duty-free if beneficiary developing countries meet the eligibility criteria established by the Congress. GSP criteria include, among others, respecting arbitral awards in favor of United States citizens or corporations, combating child labor, respecting internationally recognized worker rights, providing adequate and effective intellectual property protection, and providing the US with equitable and reasonable market access. Countries can also be graduated from the GSP program depending on factors related to economic development.