US terminates Turkey's preferential trade agreement, reduces tariffs on steel

"We are in favor of a fair, sustainable and a rule-based global trade system".

The United States and Turkey have experienced tensions in their relations after US President Trump's August decree in which he authorised the doubling of previously imposed import tariffs on Turkish aluminium and steel to 20 per cent and 50 per cent, respectively. The decision is effective May 17, it added.

It had begun reviewing the North Atlantic Treaty Organisation ally's status in the programme last August when the two countries were embroiled in a diplomatic row.

TRT World speaks to political analyst Hakki Ocal.

However, Washington added that the tariffs on Turkey's steel exports would be diminished by 25 per cent. Brunson was released last October.

Washington has warned for months that Turkey's adoption of the Russian S-400 missile system would endanger Western defense and jeopardize Ankara's planned purchase of 100 of the US's F-35 stealth fighter jets.

That level, Trump said, "will improve the financial viability" of the U.S. steel industry in the long term.

Donald Trump has terminated the preferential trade agreement which provided Turkey with partial tax-free access to USA markets, in a move some see as Washington's retaliation for the North Atlantic Treaty Organisation ally's increasingly independent policies.

"Given these improvements, I have determined that it is necessary and appropriate to remove the higher tariff on steel imports from Turkey", Trump said.

"Moreover, the removal of Turkey from the GSP (Generalized System of Preferences) does not comply with our endeavors to achieve 75 billion us dollar bilateral trade volume". "Maintaining the existing 25% tariff on most countries is necessary and appropriate at this time to address the threatened impairment of the national security", it said. It aims to promote economic development in beneficiary countries and territories by eliminating duties on thousands of products. Duty-free status was set for jewelry, precious metals, and vehicle parts, in addition to certain agricultural and fishery products and other commercial goods.

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