It's time for companies to "re-double their efforts to show the importance of renewing [the Generalized System of Preferences] before it expires again on December 31, 2017," said the Coalition for GSP in a blog post (here). As part of the effort, the group released reports on 2015 GSP-related imports, savings, and benefits for companies in all 50 states (here). Congress last renewed GSP in 2015 (see 1506250019), some two years after it expired.
U.S.-Albania trade rose 59 percent, to $190.8 million, from 2014 to 2015, and Albanian companies last year exported $2.9 million worth of goods under the U.S. Generalized System of Preferences (GSP), an official from the Office of the U.S. Trade Representative said in remarks May 11 during the WTO’s second review of the country’s trade policy and practices (here). The official noted that Albania has switched to a digital system for customs and border compliance, streamlining import processing and “substantially” reducing fees, and lauded the country for ratifying the WTO Trade Facilitation Agreement (TFA) on May 10 (see 1605100010).
The U.S.-Tunisia Trade and Investment Council held its sixth session on March 22 in Washington to explore ways to boost trade and investment between the two countries, including greater Tunisian use of the U.S. Generalized System of Preferences (GSP), the Office of the U.S. Trade Representative said (here). The Tunisian delegation indicated its intent to ratify the World Trade Organization Trade Facilitation Agreement by the end of the year and its plans to become an observer to the WTO Government Procurement Agreement, USTR said. The two parties plan to meet in Tunis in 2017 to assess progress on their bilateral initiatives. Tunisia is a leading exporter of olive oil and dates to the U.S. under GSP, but some of those dates under subheading 0804.10.60 are set to lose GSP eligibility on July 1 absent a presidential waiver (see 1602290031), as competitive needs limitation (CNL) waivers on that subheading were pending as of Feb. 23. USTR didn't comment.
A group of nearly one hundred companies and associations called for the Office of the U.S. Trade Representative to add all eligible travel goods to the duty-free import list for all Generalized System of Preferences (GSP) beneficiary countries in a March 25 letter to USTR Director for GSP Aimee Larsen (here). Industry urged USTR to add 29 HTS subheadings for GSP duty-free treatment during a public hearing earlier this month (see 1603040042). Lower duty costs for U.S. travel goods companies should create U.S. jobs, pass savings on to consumers, and spur product innovation, the letter says. “Because the vast majority of travel goods sold in the United States are imported from just one GSP-ineligible country, designating these articles as eligible for the full range of GSP countries would further diversify sourcing, leading to job creation in communities throughout the developing world,” said the coalition, which includes several broker groups, the American Apparel & Footwear Association, the U.S. Fashion Industry Association of America, and the U.S. Chamber of Commerce.
The Office of the U.S. Trade Representative is starting to review the eligibility of certain imports from Nepal for preferential tariff treatment, USTR said (here). The review is a result of authority granted through the Trade Facilitation and Trade Enforcement Act of 2015 (see 1603010043). The law authorizes the White House and USTR to begin consideration of extending duty-free treatment to certain goods from Nepal of HTS headings 4202, 4203, 5701, 5702, 5703, 5705, 6117, 6214, 6216, 6217, 6301, 6308, 6504, 6505 and 6506, subject to certain conditions.
In recent editions of the Official Journal of the European Union the following trade-related notices were posted (here):
International Trade Today is providing readers with some of the top stories for Feb. 29 - March 4 in case they were missed.
Industry representatives on March 4 made their case to the Office of the U.S. Trade Representative to add all 29 HTS subheadings covering travel goods under review for addition to the list of eligible products under the U.S. Generalized System of Preferences. During USTR’s public hearing for the U.S. GSP Program 2015/2016 Annual Review of Products and Competitive Need Limitation Waivers, Allison Baron, a lawyer representing Michael Kors, claimed that, if added, the higher volume of “certain handbags and travel goods products” flowing to the U.S. would benefit U.S. consumers by allowing importers to offer “desirable goods” at competitive prices, defraying higher labor costs. USTR has published a list of subheadings for travel goods it accepted for GSP review during this cycle (here).
The International Trade Commission published notices in the March 3 Federal Register on the following AD/CV injury, Section 337 patent, and other trade proceedings (any notices that warrant a more detailed summary will be in another ITT article):
The addition of several industry-suggested travel items to the U.S. Generalized System of Preferences Program would help U.S. companies diversify sourcing and reduce about $75 million in duty costs, without hurting domestic production, American Apparel & Footwear Association Executive Vice President Stephen Lamar wrote in a Feb. 29 letter to the International Trade Commission (here). AAFA representation testified on Feb. 24 before the ITC, urging the body to consider according GSP benefits to all eligible travel goods from all GSP beneficiary countries. A U.S. government decision is expected in June, and if approved the products "should" be able to enter duty-free treatment on July 1, AAFA said in an email. Items suggested for GSP beneficiary treatment include luggage, backpacks, purses, and wallets, according to AAFA's letter. AAFA argued that goods from China, Vietnam, Italy, and France compose 86 percent of all U.S.-imported travel items by value, and added that travel goods "are not considered import-sensitive," as the U.S. has a 98-percent import penetration of these goods, meaning "very few" of them are made in the U.S. Another letter (here) written to ITC from a coalition of 23 industry organizations, including AAFA, reiterated this point. "There is virtually no production of these items in the United States and, as such, there will be no domestic industry that will be negatively affected by the proposed designation," the coalition letter states. "On the other hand, U.S. brands, private label designers, made-to-order producers, as well as the U.S. workers they employ and the consumers they serve, stand to benefit greatly from lower duty costs under the GSP."