U.S.-Paraguay Agree to Duty-Free GSP Benefits for Certain Handicrafts, Cooperation on IPR, Etc.
In December 2007, the Office of the U.S. Trade Representative issued a press release announcing the results of the eighth meeting of the U.S.-Paraguay Joint Commission on Trade and Investment, in which the two governments agreed to expand coverage of the U.S. Generalized System of Preferences (GSP) to allow duty-free access for certain certified handicrafts from Paraguay and to continue cooperation on intellectual property rights, among other things.
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The following are highlights of the results of the meeting:
Duty-free access for certain wall hangings, pillow covers. The two sides reached agreement to allow certain wall hangings and pillow covers made in Paraguay to enter the U.S. free of duty under the GSP, after they are certified by the Government of Paraguay to be hand-loomed and of a folkloric nature. USTR sources state that the handicraft products to receive GSP duty-free benefits are classifiable under HTS subheadings 6304.99.10 and 6304.99.40.
According to USTR sources, these changes to the GSP have not yet been made and the USTR could not predict the implementation date, as it is waiting for further information from the government of Paraguay.
MOU and action plan on IPR. Recognizing that IPR protection has been a longstanding focus of U.S.-Paraguay trade relations, the two countries agreed to conclude a new Memorandum of Understanding (MOU) and Action Plan regarding IPR protection and enforcement in Paraguay, to replace the expiring MOU between the two countries. The new MOU and Action Plan would remain in force until the end of 2009.
Biofuels capabilities. The U.S. also committed support for the development of Paraguay's biofuels capabilities and expressed support for continued assistance in fostering private investment through the Overseas Private Investment Corporation (OPIC).
USTR press release (dated 12/05/07) available at http://www.ustr.gov/Document_Library/Press_Releases/2007/December/United_States_Paraguay_Conclude_Eighth_Meeting_of_the_Joint_Committee_on_Trade_Investment.html?ht=