Modifications to GSP Eligibility

Posted on Nov 3

New Presidential Proclamation Modifies GSP Eligibility

On October 30, 2020, President Trump signed a Proclamation which announced several changes to the Generalized System of Preferences (GSP) eligibility for preferential treatment based on the US Trade Representative’s (USTR) 2020 GSP Program review findings.

Many products from Thailand were removed from GSP eligibility, and according to the USTR, this revocation is based on Thailand’s failure to assure the U.S. that it will provide equitable and reasonable access to its market for pork products. A complete list of the affected products from Thailand can be found in Annex I here.

The USTR also announced that Laos will not be designated as a GSP beneficiary at this time, and that it is closing its associated review, following a lack of recent engagement by the government of Laos on the GSP worker rights eligibility criterion.

In addition, the proclamation President Trump signed on October 30, 2020 adds fresh-cut roses (HTS 0603.11.00) to, and removes parboiled rice (HTS 1006.30.10) from, the list of goods that are eligible for GSP trade benefits. The proclamation also waived Competitive Need Limitations (CNLs) for products in which total imports are below the $24.5 million GSP de minimis level. Finally, the proclamation removed GSP eligibility for six products from Argentina, Brazil, Ecuador, and Indonesia that exceeded the $190 million CNL threshold for imports from a single country, above which the GSP statute requires removal of the product from eligibility.

A copy of the complete USTR notice can be found here.

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