International Trade Law News

Published by Jacobson Burton Kelley PLLC

Even though the Generalized System of Preferences (GSP) expires on December 31, 2006 and its future remains in doubt, the U.S. Trade Representative (USTR) announced in today's Federal Register that it will conduct a 2006 annual GSP product and country eligibility review to modify the list of products that are eligible for duty-free treatment under the GSP program, and to modify the GSP status of certain GSP beneficiary developing countries. Interested parties, including foreign governments, may submit petitions to:

1. Designate additional articles as eligible for GSP benefits, including to designate articles as eligible for GSP benefits only for countries designated as least-developed beneficiary developing countries, or only for countries designated as beneficiary sub-Saharan African countries under the African Growth and Opportunity Act (AGOA);
2. Withdraw, suspend or limit the application of duty-free treatment accorded under the GSP with respect to any article, either for all beneficiary developing countries, least-developed beneficiary developing countries or beneficiary sub-Saharan African countries, or for any of these countries individually;
   
3. Waive the "competitive need limitations'' for individual beneficiary developing countries with respect to specific GSP-eligible articles (these limits do not apply to either least-developed beneficiary developing countries or beneficiary sub-Saharan African countries); and
   
4. Otherwise modify GSP coverage.