US Trade Representative, Susan C. Schwab on Monday announced the outcome of the 2007 Annual Review of the Generalized System of Preferences (GSP), a program created in 1974 that provides duty-free treatment for nearly 5,000 products exported to the United States from 132 beneficiary developing countries.
As a result of this year’s review, duty-free treatment for the vast majority
of products covered by GSP will continue, she announced.
In addition, the Administration will continue GSP eligibility for 99 exports
from specific countries, even though the quantities of those exports exceeded
statutory thresholds in 2007.
As authorized by the GSP statute, the Administration will waive those thresholds
known as “competitive need limitations” (CNLs).
In keeping with the goals of the program and Congressional intent, GSP eligibility
will be terminated for 25 products from specific beneficiary countries, in order
to advance a more targeted and effective program to promote economic development.
“Congress created the GSP program to serve as a bridge for developing
countries as they increase their participation in the global trading system,”
Ms Schwab commented, continuing:
“The GSP program has helped to promote development and reduce poverty
in the developing countries while expanding our bilateral trade. It has also
helped make the United States one of the world’s most open economies to
products of developing countries.”
In this year’s review, the Administration granted waivers of the CNLs
to ensure continued GSP duty-free benefits to 99 products from 15 beneficiary
countries, with an approximate import value of USD422mn in 2007.
In addition, three types of aluminum products were added to the list of GSP-eligible
products from all beneficiary countries.
Consistent with statutory provisions concerning product competitiveness and
after extensive analysis, the Administration determined that 25 products from
beneficiary countries can compete effectively in the US market without duty-free
treatment, and will no longer be eligible under the GSP program.
In 2007, these imports were valued at approximately USD1.4bn.
This group includes 21 products that exceeded the statutory CNLs, and four
products that have had waivers to the CNLs for the past five years and are now
subject to statutory “super-competitiveness” thresholds.
The Annual Review also involved an analysis of petitions to withdraw or limit
a country’s GSP benefits for not meeting GSP eligibility criteria.
These criteria include the extent to which a country provides adequate and
effective protection of intellectual property rights (IPR), and whether a country
is taking steps to ensure internationally recognized worker rights.
Several
beneficiaries remain under active scrutiny because of such concerns, including:
Lebanon, Russia and Uzbekistan regarding their lack of IPR protection, and Bangladesh,
Niger, the Philippines and Uzbekistan regarding worker rights.
With respect to a petition from the International Intellectual Property Alliance
on Russia’s IPR protection, the Administration revealed that it continues to monitor closely
the Russian government’s progress in meeting the commitments it undertook
in the November 2006 Agreement with the United States on IPR, and to seek further
progress in the context of ongoing WTO accession negotiations.