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USTR Initiates Child Labor Review in Production of Certain GSP-Eligible Hand-Loomed/Hand-Hooked Carpets, Etc.

The Office of the U.S. Trade Representative has issued a notice announcing that its Trade Policy Staff Committee (TPSC) is conducting a child labor review in the production of certain hand-loomed or hand-hooked carpets and certain other textile floor coverings eligible for duty-free treatment under the Generalized System of Preferences.

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The USTR states that its TPSC is conducting its triennial review of whether each GSP beneficiary country is taking steps to eliminate the worst forms of child labor,1 including the use of bonded child labor, in the production of such carpets and floor coverings imported under the GSP program.

Comments are due February 15, 2008.

Seven GSP-Eligible HTS Subheadings Are Being Reviewed

The 2004 Miscellaneous Trade and Technical Corrections Act (H.R. 1047) authorized the President to designate seven Harmonized Tariff Schedule (HTS) subheadings which cover certain hand-loomed or hand-hooked carpets and other textile floor coverings made of wool, cotton, fine animal hair, or man-made textile materials, as eligible for duty-free treatment under the GSP program.

These seven GSP-eligible HTS subheadings which are included in the TPSC's review are: 5702.51.20 (now 5702.50.20), 5702.91.30, 5702.92.00 (now 5702.92.10), 5702.99.10 (now 5702.99.05), 5703.10.00 (now 5703.10.20), 5703.20.10, and 5703.30.00 (now 5703.30.20).

Loss of GSP-Eligibility Possible If Countries Are Not Taking Appropriate Steps

According to the USTR, upon a finding during the review that a country is not taking steps to eliminate the worst forms of child labor, including the use of bonded child labor, in production of certain hand-loomed or hand-hooked carpets and certain other textile floor coverings imported under the U.S. GSP program, the TPSC will recommend changes in the GSP coverage that would eliminate those carpets and floor coverings from duty-free treatment under the GSP.

Top Suppliers Include India, Thailand, Philippines, Pakistan, Turkey, Nepal, Etc.

According to the USTR, the top suppliers to the U.S. of the subject carpets and floor coverings under the GSP program in 2006 (the most recent year for which full-year data is available) were: India, Thailand, Philippines, Indonesia, Pakistan, Egypt, Turkey, South Africa, and Nepal.

1For purposes of this review, the term ''worst forms of child labor'' means (19 USC 2467(6)) (A) all forms of slavery or practices similar to slavery, such as the sale or trafficking of children, debt bondage and serfdom, or forced or compulsory labor, including forced or compulsory recruitment of children for use in armed conflict; (B) the use, procuring, or offering of a child for prostitution, for the production of pornography or for pornographic purposes; (C) the use, procuring, or offering of a child for illicit activities in particular for the production and trafficking of drugs; and (D) work which, by its nature or the circumstances in which it is carried out, is likely to harm the health, safety, or morals of children.

(See ITT's Online Archives or 12/01/04 news, 04120105, for BP summary of the provision of the Miscellaneous Trade and Technical Corrections Act of 2004 which allowed the President to designate the subject carpets/textile floor coverings as GSP-eligible.

See ITT's Online Archives or 01/02/08, 08010220, for BP summary of the Department of Labor's issuance of guidelines for developing a list of goods from countries produced by child or forced labor.

See ITT's Online Archives or 11/15/07 news, and 07111520, for BP summary of the Department of Labor's request for information on beneficiary countries' efforts to eliminate the worst forms of child labor, respectively.)

-comments are due February 15, 2008

USTR contact - GSP Subcommittee of the TPSC (202) 395-6971

USTR notice (FR Pub 01/18/08) available at http://a257.g.akamaitech.net/7/257/2422/01jan20081800/edocket.access.gpo.gov/2008/pdf/E8-905.pdf