Download GSP AND ATPDEA PROGRAMS SET TO EXPIRE Both the

GSP AND ATPDEA PROGRAMS SET TO EXPIRE
Both the Generalized System of Preferences (GSP) and the Andean Trade Promotion and
Drug Eradication Act (ATPDEA) are scheduled to expire December 31, 2006. Through
GSP, more than 4,650 manufactured products originating in any of the 144 beneficiary
developing countries receive duty-free entry into the U.S. ATPDEA provides similar
duty-free treatment for products of Bolivia, Colombia, Ecuador and Peru.
As in numerous previous years, it appears unlikely that either will be renewed or
extended by Congress prior to their expiration. In the past, GSP was eventually renewed
retroactively later in the following year. Retroactive renewal is indeed possible after
expiration, but it is unlikely that such renewal will return either bill to the current status.
It is unlikely that all the countries currently enjoying benefits will be included with any
renewal of the GSP. Faced with the current major trade deficit, Congress will likely be
more inclined to discontinue unilateral benefits whenever possible in favor of bilateral
free trade agreements.
The office of the U.S. Trade Representative is considering possible changes to GSP under
the existing framework. The USTR has been evaluating responses to its 2006 product
and country eligibility review. It is believed possible that the revisions may result in
renewal of GSP in a modified form.
More information may be obtained by visiting the website of the “Coalition for GSP.” at
http://www.tradepartnership.com/site/coalition_gsp.html and/or the website of the U.S.
Trade Representative
http://www.ustr.gov/Trade_Development/Preference_Programs/GSP/Section_Index.html