Presidential Proclamation Reinstates GSP Benefits for Liberia, Designates Liberia as an LDBDC
President Bush has issued Proclamation 7981 in order to reinstate Liberia's duty-free benefits under the Generalized System of Preferences (GSP) program. In addition, the President has determined that Liberia should be designated as a least-developed beneficiary developing country (LDBDC).
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(A U.S. Trade Representative (USTR) press release explains that the GSP program was created by the Trade Act of 1974 in order to promote the economic development of developing countries. Under the program, 137 beneficiary developing countries export approximately 3,450 different products duty-free to the U.S. LDBDCs are eligible to export another 1,400 products duty-free.)
Liberia to Receive GSP Benefits and LDBDC Designation in Two Stages
Proclamation 7981 provides that:
Liberia's GSP benefits to be reinstated approximately March 9, 2006. in order to reflect in the Harmonized Tariff Schedule (HTS) the restoration of preferential treatment for Liberia as a beneficiary developing country under the GSP, general note 4(a) is modified by adding in alphabetical order "Liberia" to the list entitled "Independent Countries".
This HTS modification will be effective with respect to articles with a time of entry on or after 15 days after February 22, 2006 (i.e., approximately March 9, 2006).
Liberia to be designated as an LDBDC approximately April 23, 2006. In order to reflect in the HTS the designation of Liberia as an LDBDC, HTS general note 4(b)(i) will be modified by adding in alphabetical order "Liberia." The USTR explains that Liberia will become an LDBDC after a 60-day period of Congressional review, which began on February 22, 2006.
This HTS modification will be effective with respect to articles with a time of entry on or after 60 days of February 22, 2006 (i.e. approximately April 23, 2006).
(According to the U.S. Trade Representative (USTR), Liberia's GSP benefits were suspended in 1990 because of worker rights concerns. However, Liberia's President has made improving worker rights a high priority, including repealing a decree to prohibit strikes, and inviting the International Labor Organization (ILO) to assist Liberia in bringing its laws and practices into conformity with its ILO obligations. See ITT's Online Archives or 12/30/05 news, 05123015, for BP summary of the USTR's review of Liberia's eligibility for the GSP program.)
Presidential Proclamation 7981 (dated 02/22/06, FR Pub 02/24/06) available at http://a257.g.akamaitech.net/7/257/2422/01jan20061800/edocket.access.gpo.gov/2006/pdf/06-1798.pdf
USTR Press Release (dated 02/22/06) available athttp://www.ustr.gov/Document_Library/Press_Releases/2006/February/US_Reinstates_Trade_Preference_Benefits_for_Liberia.html