Standard GSP for Non-AGOA Countries to Expire on December 31, 2006 Unless Extended by Legislation
The standard Generalized System of Preferences (GSP) program (i.e., A, A*, and A) is scheduled to expire for non-African Growth and Opportunity Act (AGOA) beneficiary countries on December 31, 2006, unless extended by legislation.
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(Non-AGOA GSP beneficiary countries include India, Bangladesh, Brazil, Philippines, Sri Lanka, and numerous others.
See ITT's Online Archives or 08/08/02 news, 02080805, for BP summary on the reinstatement of the standard GSP program for non-AGOA countries through December 31, 2006.)
Standard GSP and AGOA-GSP for AGOA Countries Remains in Place
The standard GSP program (i.e., A, A*, and A) and the AGOA-GSP program (i.e., D) for AGOA beneficiary countries (e.g., Kenya, Nigeria, Senegal, South Africa, etc.) remains in effect through September 30, 2015.
(See ITT's Online Archives or 07/14/04 news, 04071405, for BP summary of the enactment of AGOA III, which extended the standard GSP and AGOA-GSP programs for AGOA countries through September 30, 2015 (from September 30, 2008).)
USTR is Considering Whether Operation of the GSP Program Should Change
In August 2006, the Office of the U.S. Trade Representative (USTR) issued a notice requesting additional comments on whether (1) to limit, suspend, or withdraw GSP eligibility for 13 top beneficiaries, including Brazil and India; and (2) existing CNL waivers are no longer warranted. (See ITT's Online Archives or 08/11/06 news, 06081110, for BP summary of the USTR's August 2006 notice.)
According to a USTR press release, the USTR has received over 800 comments on these GSP issues, which are available for viewing online.
Congress May Consider GSP Extension Bill This Year
According to Congressional sources, the House of Representatives may consider legislation to extend the GSP program.
Sources note that if the House passes a GSP extension bill, negotiations would then begin with the Senate to try and secure its passage of this legislation. (It is not known if such a measure would be a simple extension, how long the extension would be for, or if the measure would also modify the GSP program with respect to any of the top beneficiary countries.)
BP will update subscribers as new information is available.