GSP for Most Countries Scheduled to Expire on December 31st, House & Senate Working on Trade Preference Reform
The Generalized System of Preferences (GSP) program (i.e., A, A*, and A) for most beneficiary countries, i.e., other than those listed as African Growth and Opportunity Act (AGOA) beneficiary countries, will expire on December 31, 2009, unless a law extending it is enacted.
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(For AGOA beneficiary countries, both the GSP program (i.e., A, A*, and A) and the AGOA-GSP program (i.e., D) remain 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 GSP and AGOA-GSP programs for AGOA countries through September 30, 2015 (from September 30, 2008).)
Senate, House Working on Trade Preference Program Reform Package
Congressional sources at the Senate Finance Committee said that they are "actively" working on a trade preference reform package, which would include GSP (and the other trade preference programs, such as the Andean Trade Preference Act/Andean Trade Promotion and Drug Eradication Act (ATPA/ATPDEA), the Caribbean Basin Trade Partnership Act (CBTPA), etc.).
The sources added that the committee had not yet decided how it will approach the issue of extending the GSP program beyond December 31, 2009 if the reform package is not completed in time.
House Ways and Means Committee sources add that they also have been working on a trade preference program reform package and have not yet determined how they will handle the issue of extending GSP if the reform package is not completed in time. Sources add that some members are pushing for the reform package and are not yet willing to talk about an extension of GSP.
(See ITT's Online Archives or 10/20/08 news, 08102015, for BP summary of the extension of ATPA/ATPDEA through December 31, 2009, subject to certain country-specific exceptions for Bolivia and Ecuador. See ITT's Online Archives or 05/19/08 news, 08051905, for BP summary of the extension of CBTPA through September 30, 2010.)
WTO Extended U.S. Waivers for ATPA, CBERA, AGOA Preferences, USTR Says Waiver Not Related to U.S. Extension Plans
In May 2009, the World Trade Organization's General Council approved U.S. requests for waivers to extend U.S. preferential trade benefits to member countries of: the Andean Trade Preference Act and Andean Trade Promotion and Drug Eradication Act (ATPA/ATPDEA) until December 31, 2014; the Caribbean Basin Economic Recovery Act of 1983 (CBERA) until December 31, 2014; and the African Growth and Opportunity Act (AGOA) until September 30, 2015. (See ITT's Online Archives or 06/03/09 news, 09060330, for BP summary.)
However, according to sources at the U.S. Trade Representative's Office, the expiration dates of the WTO waivers were chosen to minimize the need to go back to the WTO for further waiver approvals. They are not related to extension plans under U.S. law.
(See ITT's Online Archives or 04/24/09 news, 09042405, for BP summary of 24 groups asking the USTR for a simple "unified" trade preference program.
See ITT's Online Archives or 02/19/09 news, 09021910, for BP summary of highlights of the Trade Subcommittee's hearings and oversight-related activities planned for 2009-2010, including oversight of U.S. trade preference programs.
See ITT's Online Archives or 10/20/08 news, 08102015, for BP summary of the President signing the GSP extension through December 31, 2009 into law.)