USTR Seeks Comments on Possible Withdrawal, Suspension, or Limitation of GSP Benefits for Bangladesh
The Office of the U.S. Trade Representative (USTR) has issued a notice stating that the Generalized System of Preferences (GSP) Subcommittee of the Trade Policy Staff Committee (TPSC) is seeking public comments by May 12, 2004 on which products of Bangladesh should no longer be eligible for GSP duty-free treatment if the GSP Subcommittee decides to recommend limiting Bangladesh's GSP benefits.
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The USTR explains that as part of an ongoing country practice review, the GSP Subcommittee is considering whether to recommend that duty-free treatment accorded to imports from Bangladesh under the U.S. GSP program be withdrawn, suspended, or limited on the grounds that Bangladesh has not implemented long-standing commitments to the U.S. to allow its national labor law to be applied in its export processing zones (EPZs).
Bangladesh Has Failed to Extend Certain Worker Rights to EPZs
According to the USTR's notice, the government of Bangladesh does not provide freedom of association or the right to collective bargaining to workers in its EPZs. Among other commitments, Bangladesh had published a notice on January 1, 2001 stating that it would extend these rights to EPZs as of January 1, 2004. However, the USTR states that Bangladesh has failed to do so.
(The USTR states that in 1999, the AFL-CIO filed a petition seeking withdrawal or suspension of GSP benefits for Bangladesh. The TPSC accepted the petition for review, sought public comment on the petition, including whether withdrawal or suspension of benefits is warranted, and conducted a public hearing. The review of the petition was continued until this year; as a result, the GSP Subcommittee is considering recommending to the TPSC that duty-free treatment under GSP be withdrawn, suspended, or limited for Bangladesh pursuant to 19 USC 2462(d)(1).)
Comments Sought on Bangladesh Products for Which GSP Duty-Free Treatment Should Be Withdrawn
The USTR indicates that if the GSP Subcommittee recommends to the TPSC that the President limit GSP benefits for Bangladesh products, rather than withdraw or suspend duty-free treatment entirely, the GSP Subcommittee will recommend a list of products for which duty-free treatment under the GSP program should be withdrawn.According to the USTR, its notice seeks comments on which products to include on that list.
GSP-Eligible Imports from Bangladesh (HTS Numbers Listed)
The USTR states that the Annex to its notice lists currently GSP-eligible tariff items from the Harmonized Tariff Schedule (HTS) in which there were imports under GSP from Bangladesh during 2003, as follows:
| 0303.75.00 | 2001.90.45 | 4602.10.09 |
| 0304.90.90 | 2001.90.60 | 4602.10.16 |
| 0406.90.25 | 2008.99.90 | 4602.10.18 |
| 0710.29.40 | 2401.20.83 | 4602.10.45 |
| 0710.80.70 | 2401.20.85 | 4602.10.80 |
| 0711.20.38 | 3307.41.00 | 5007.90.30 |
| 0713.20.20 | 3503.00.55 | 5608.90.23 |
| 0713.39.20 | 3923.21.00 | 5608.90.30 |
| 0910.99.60 | 3923.90.00 | 5702.99.20 |
| 1006.20.40 | 3924.10.20 | 6117.80.85 |
| 1006.30.10 | 3924.10.40 | 6214.10.10 |
| 1006.30.90 | 3924.90.55 | 6216.00.46 |
| 1006.40.00 | 3926.10.00 | 6217.10.85 |
| 1702.30.40 | 3926.20.90 | 6304.99.25 |
| 1703.90.30 | 3926.40.00 | 6307.90.98 |
| 1704.90.35 | 3926.90.98 | 6405.90.20 |
| 1901.90.90 | 4015.90.00 | 6506.99.00 |
| 1902.30.00 | 4104.41.20 | 6701.00.30 |
| 1904.10.00 | 4104.41.50 | 6802.93.00 |
| 1904.90.01 | 4107.91.80 | 6911.10.10 |
| 1905.90.90 | 4201.00.60 | 6911.10.15 |
| 2001.90.38 | 4418.90.45 | 6911.10.25 |
(State Department sources have previously noted that the full or partial withdrawal of GSP benefits from Bangladesh would affect a relatively small volume of U.S. imports from Bangladesh, as only about $30 million of such imports benefited from GSP in 1999. Sources have stated that most U.S. imports from Bangladesh are textiles, apparel, and shrimp, none of which are eligible for GSP duty-free treatment.
See ITT's Online Archives or 12/15/00 news, 00121420, for BP summary of the USTR's decision to not take GSP action on Bangladesh as a result of the U.S.-Bangladesh agreement on workers' rights in Bangladesh's EPZs.)
USTR contact - GSP Subcommittee (202) 395-6971
USTR notice (FR Pub 04/12/04) available at http://a257.g.akamaitech.net/7/257/2422/14mar20010800/edocket.access.gpo.gov/2004/pdf/04-8203.pdf