Bush Administration Completes 2007 Annual Review of Generalized System of Preferences Program

Ambassador Susan C. Schwab announced today the outcome of the Bush Administration’s 2007 Annual Review of the Generalized System of Preferences (GSP), a program created in 1974 that provides duty-free treatment for nearly 5,000 products exported to the United States from 132 beneficiary developing countries.

As a result of this year’s review, duty-free treatment for the vast majority of products covered by GSP will continue.  In addition, the Administration will continue GSP eligibility for 99 exports from specific countries, even though the quantities of those exports exceeded statutory thresholds in 2007.  As authorized by the GSP statute, the Administration will waive those thresholds known as “competitive need limitations” (CNLs).  In keeping with the goals of the program and Congressional intent, GSP eligibility will be terminated for 25 products from specific beneficiary countries in order to advance a more targeted and effective program to promote economic development.

“Congress created the GSP program to serve as a bridge for developing countries as they increase their participation in the global trading system,” U.S. Trade Representative Susan C. Schwab said today.  “The GSP program has helped to promote development and reduce poverty in the developing countries while expanding our bilateral trade.