Bush Administration declares '2005 Annual Review' of GSP
01 Jul '06
4 min read
The Bush Administration announced the outcome of the 2005 Annual Review of the Generalized System of Preferences (GSP), a program created in 1974 under which 136 beneficiary developing countries currently export certain products duty-free to the United States.
In the Annual Review, as required by regulations, the Administration evaluates the list of articles and countries eligible for duty-free treatment under GSP using statutory criteria.
"With broad bipartisan support, Congress created the GSP program to be a temporary bridge to aid developing countries in participating in the global trading system, while expanding choices for the American consumer and industry," U.S. Trade Representative Susan C. Schwab said today.
"Both the United States and the participating countries have benefited greatly from these preferences. In part because of GSP, the United States remains one of the world's most open major economies to products of developing countries."
During the 2005 Review, the Administration determined that certain imports from selected developing countries can compete effectively with imports that are subject to duties and, thus, should no longer be eligible for duty-free treatment under the GSP program.
As a result, importers of those goods from affected countries must now pay duties at the normal tariff rates on those items.
The Administration also extended or preserved benefits by continuing GSP benefits that would otherwise expire and restored benefits on some goods. In 2005, $26.7 billion in products were imported duty-free from eligible beneficiary countries under the GSP program, an 18 percent increase over 2004.
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