U.S. steps up GSP compliance oversight

The U.S. government has launched a new initiative to ensure that developing countries benefiting from product-specific duty-free access to the U.S. market are in compliance with the eligibility requirements of the Generalized System of Preferences (GSP).    The U.S. government has launched a new initiative to ensure that developing countries benefiting from product-specific duty-free access to the U.S. market are in compliance with the eligibility requirements of the Generalized System of Preferences (GSP).
   As part of this effort, the Office of the U.S. Trade Representative (USTR) will press to conclude outstanding GSP cases and stand up a new interagency process to assess beneficiary country eligibility.
   “This interagency process complements the current petition receipt and public input process for country practice reviews, which will remain unchanged,” USTR said.
   To qualify for GSP, a beneficiary country must meet 15 eligibility criteria set by Congress, including respecting arbitral awards in favor of U.S. citizens or corporations, combating child labor, respecting internationally recognized worker rights, providing adequate and effective intellectual property protection, and providing the United States with equitable and reasonable market access.
   If the assessment of a beneficiary country raises concerns regarding its GSP compliance, the administration may “self-initiate” a full review of that country’s continued eligibility for GSP.  
   USTR said the first of these assessments will focus on GSP beneficiary countries in Asia. The Trump administration will assess GSP beneficiary countries in other parts of the world during the second and third years of this process, the agency said.
   “Countries receiving U.S. trade benefits must meet the eligibility criteria established by Congress,” said U.S. Trade Representative Robert Lighthizer in a statement. “By creating a more proactive process to assess beneficiary countries’ eligibility, the United States can ensure that countries that are not playing by the rules do not receive U.S. trade preferences.”
   About 120 developing countries and territories currently participate in GSP. In 2016, the total value of imports that entered the United States under the trade preference program was $18.9 billion.