Trump terminates preferential trade status to India, Turkey
The Trump administration has said it will terminate its preferential trade status to India and Turkey as the White House [works to fulfill the President’s promise to fix] imbalanced trade relations.
On Monday, the Office of the U.S. Trade Representative issued a statement
that said India’s and Turkey’s designations as beneficiary developing ｃountries under the Generalized System of Preferences (GSP) program would be canceled due to non-compliance. …
Specifically, it said India had implemented trade barriers that have negatively impacted the United States, and it has not taken measures to fix it.
“I am taking this step because, after intensive engagement between the United States and the government of India, I have determined that India has not assured the United States that it will provide equitable and reasonable access to the markets of India,” Trump wrote to congressional leaders.
Turkey’s designation was terminated [because it is] “economically developed and should no longer benefit from preferential market access.”
Turkey was given the designation by the United States in 1975 and since then, its gross national income per capita, declining poverty rates and export diversification show that it no longer warrants preferential treatment, it said. …
The statement says the designation terminations were at the behest of President Trump, who is currently [negotiating a trade deal] with China.
The president has long said that the United States has been on the wrong side of trade deficits and his administration made it a major goal to fix that.
Most recently, Mr. Trump called off a scheduled tariff increase on China due to trade talks progressing. He said if a trade deal is completed, he’d invite Chinese President Xi Jinping to his Florida Mar-a-Lago resort to sign it.
The designation removal will not take effect for 60 days after notifications are sent to Congress as well as to the governments of Turkey and India. It will then be enacted by a Presidential Proclamation, the statement said.
NOTE: A tariff is a tax on imports, often known as a duty or a trade barrier. The purpose of a tariff is to protect domestic production and jobs.
Image Source: https://www.studentnewsdaily.com/wp-content/uploads/2019/03/President-Trump-with-Indian-Prime-Minister-Modi_2017-June26-820x581.jpg
Article Source: https://www.studentnewsdaily.com/daily-news-article/trump-terminates-preferential-trade-status-to-india-turkey/
Vocabulary:
1. terminate / vern : to bring to an end; put an end to:
2. preferential / adjective : of, relating to, or of the nature of preference:
3. beneficiary / noun : a person or group that receives benefits, profits, or advantages.
4. compliance / noun : the act of conforming, acquiescing, or yielding.
5. implement / verb : to fulfill; perform; carry out:
6. assure / verb : to declare earnestly to; inform or tell positively; state with confidence to:
7. diversify / verb : to add different types of manufactured products, crops, etc., especially to a business.
8. behest / noun : a command or directive.
9. enact / verb : to make into an act or statute:
Questions:
1. The first paragraph of a news article should answer the questions who, what, where and when. List the who, what, where and when of this news item. (NOTE: The remainder of a news article provides details on the why and/or how.)
2. What is the preferential trade status India and Turkey have been receiving?
3. a) For what reason is President Trump ending India’s and Turkey’s special trade designation?
b) What is the specific reason for India?
c) What is the specific reason for Turkey?
4. Why is President Trump renegotiating trade deals and/or ending special trade privileges with our trading partners around the world?
