USTR Requests Comments on Possible Withdrawal or Suspension of GSP Benefits for Romania
The Office of the U.S. Trade Representative (USTR) has issued a notice announcing that the U.S. is considering whether to recommend that duty-free treatment accorded to imports from Romania under the Generalized System of Preferences (GSP) program be withdrawn or suspended for the following reasons:
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Romania Affords Preferential Treatment to Other Developed Country
According to USTR's notice, Romania affords preferential treatment to the products of a developed country, other than the U.S., which has, or is likely to have, a significant adverse effect on U.S. commerce.
In 2002, the GSP Subcommittee received a petition from the Distilled Spirits Council of the U.S. and the Pharmaceutical Research and Manufacturers of America (PhRMA) requesting that Romania's eligibility for GSP benefits be terminated because Romania granted tariff preferences to European Union (EU) distilled spirits and certain pharmaceuticals which have, or are likely to have, a significant adverse effect on U.S. commerce. These petitions were accepted for review in the 2005 Annual Review.
Veterinary Order 95 Requirements Block U.S. Poultry Exports
In addition, Romania adopted Veterinary Order 95 on June 2, 2006 which includes requirements that: (1) Individual U.S. poultry plants must be approved for export to the EU; and (2) U.S. poultry producers must abide by EU welfare rules for slaughter. There are no EU-approved poultry facilities in the U.S. According to USTR's notice, this Order affects all poultry meat shipments loaded for shipment to Romania after June 7, 2006. USTR notes that Romania will allow poultry certified under previous regulations until August 5, 2006.
USTR is seeking public comments on whether, in view of the information provided in the petition, implementation of these new measures, and any additional information pertaining to the eligibility criteria set forth in the statute, Romania no longer meets one or more statutory criteria for GSP eligibility. All public comments must be received by September 7, 2006.
USTR contact - GSP Subcommittee (202) 395-6971
USTR Notice, FR Pub 08/08/06, available at http://a257.g.akamaitech.net/7/257/2422/01jan20061800/edocket.access.gpo.gov/2006/pdf/E6-12833.pdf