ExecutiveOrdersEO
Proc 9887ProclamationTrump 45 · R

Proclamation 9887

To Modify the List of Beneficiary Developing Countries Under the Trade Act of 1974

This proclamation terminates Turkey's designation as a beneficiary developing country under the Generalized System of Preferences (GSP), effective May 17, 2019. It also removes Turkey's exemption from safeguard measures on crystalline silicon photovoltaic products and large residential washers, and modifies the Harmonized Tariff Schedule accordingly.

Federal Register Open PDF 84 FR 23425

Impact dates

  1. Termination of Turkey's GSP beneficiary status takes effect

  2. Removal of Turkey's exemption from safeguard measures on CSPV products and large residential washers takes effect

  3. Congress and Turkey notified of intent to terminate designation (60-day advance notice satisfied)

Key directives

  • Terminate Turkey's designation as beneficiary developing country effective May 17, 2019
  • Modify HTS general notes 4(a) and 4(d) and pertinent subheadings per Annex A
  • Remove Turkey's exemption from safeguard measures on CSPV products and large residential washers effective May 17, 2019
  • Modify HTS subdivision (b)(2) of U.S. note 17 and subdivision (b) of U.S. note 18 per Annex B
  • Supersede inconsistent provisions of previous proclamations and Executive Orders

Timeline

Immediate

  • Termination of Turkey's GSP beneficiary status effective May 17, 2019
  • Removal of Turkey's exemption from safeguard measures on CSPV products and large residential washers effective May 17, 2019
  • HTS modifications take effect

Near term (90d)

  • Adjustment by U.S. importers to new tariff rates on Turkish goods previously covered by GSP
  • Potential trade flow shifts as Turkish exports lose preferential access

Long term

  • Structural change in U.S.-Turkey trade relationship
  • Potential retaliatory measures by Turkey
  • Reassessment of Turkey's developing country status for future trade programs

Risks & tensions

  • Potential WTO dispute given Turkey's developing country status dispute
  • U.S.-Turkey diplomatic tensions (context: 2019 period of strained relations over Syria, S-400 purchase)
  • Retaliatory tariffs from Turkey possible
  • Domestic U.S. industry may benefit from reduced competition but consumer prices could rise
Proclamation 9887: To Modify the List of Beneficiary Developing Countries Under the Trade Act of 1974 · Executive Orders