The U.S. International Trade Commission (ITC) has commenced an investigation concerning potential modifications to the products eligible for duty-free treatment under the Generalized System of Preferences (GSP). The investigation was requested by the United States Trade Representative (USTR), following petitions for the requested changes that were filed by certain foreign governments, industry groups, and companies. The investigation will culminate in a report to USTR that provides the ITC’s analysis of how the potential GSP modifications would likely impact U.S. imports, competing U.S. industries, and U.S. consumers.
The potential GSP modifications fall into three general categories: (1) products to be added to the list of GSP-eligible products; (2) products to be removed from the list of GSP-eligible products; and (3) products for which competitive need limitations (CNL) would be waived. CNLs represent the maximum import level of a product that is eligible for duty-free treatment under the GSP, which is set in this investigation by reference to a dollar value limit of $170,000,000. Once that limit is reached, trade is considered “competitive,” and imports of the product become ineligible for GSP treatment, unless a waiver is granted.
Brief summaries of the products at issue in the investigation are shown below. Readers should consult the Annex to USTR’s request for specific Harmonized Tariff Schedule subheadings and statistical reporting numbers that are covered by the ITC’s investigation.
Products That May Be Added To List Of GSP-Eligible Products
• Effervescent wine
• Essential oils of lemon
• Ferromanganese containing by weight more than 4 percent of carbon
• Certain handbags and travel goods products
Products Subject To Removal Of GSP Duty-Free Status From Specified Countries
• Fluorescent brightening agent 32 (India and Indonesia)
• Other fluorescent brightening agents (India and Indonesia)
• PET resin (polyethylene terephthalate in primary forms) (India)
• Nonadhesive plates, sheets, film, foil and strip, noncellular, of polyethylene terephthalate (Brazil)
• Nonadhesive plates, sheets, film, foil and strip, flexible, nesoi, of noncellular plastics (Brazil)
Petitions Submitted For Waiver Of GSP CNLs
• Certain dates (Tunisia)
• Certain virgin olive oil (Tunisia)
• Certain single-cell micro-organisms (Brazil)
• Certain nonalcoholic beverages (Thailand)
• Rare gases, other than argon (Ukraine)
• Certain insulated beverage bags (Philippines)
• Certain porcelain or china household table and kitchenware sets (Indonesia)
• Certain parts and accessories motor vehicles (India)
The ITC’s investigation includes a public hearing and the opportunity to provide written submissions for the record. Pre-hearing submissions are due on February 3, the hearing will be held on February 24, and post-hearing submissions are due no later than February 29. The ITC will submit its confidential report to USTR by April 28, 2016. A non-confidential version of the report will also be issued thereafter.
The United States Plans to Suspend South Africa’s AGOA Benefits, Subject to Implementation of Agriculture Agreement
Kathleen L. Benner
On January 11, President Obama announced that the United States will suspend South Africa’s African Growth and Opportunity Act (AGOA) benefits as of March 15, 2016 as part of an ongoing dispute over South African’s treatment of agricultural imports from the United States. In November 2015, the President notified Congress that he would suspend South Africa’s benefits, which allow South African agricultural imports duty and quota free access to the U.S. market, 60 days after notification, unless South Africa improved market access for U.S. poultry, pork, and beef. On January 6, 2016, the United States and South Africa announced an agreement to resolve the barriers to American meat imports. The President’s recent proclamation of the suspension of AGOA benefits in March may be intended to incentivize South Africa to implement the agreement. Under the terms of the agreement, South Africa will allow 65,000 tons of poultry imports from the United States.
