With some members of Congress who normally support GSP and other trade measures calling for changes in the program, there’s a real chance GSP will not be extended, be extended after a lapse with no retroactivity or be extended with substantial changes. The program has become a key weapon in the U.S. effort to conclude a Doha Round agreement. Key lawmakers have threatened to kill the program altogether because they believe its largest beneficiaries have been antagonistic to U.S. interests in the WTO negotiations.

The United States Trade Representative announced it’s seeking written comments on whether to limit, suspend or completely withdraw GSP benefits from 13 of the program’s largest users - Argentina, Brazil, Croatia, India, Indonesia, Kazakhstan, Philippines, Romania, Russia, South Africa, Thailand, Turkey, and Venezuela. These countries each exported more than $100 million in goods to the United States under GSP in 2005. In addition, these countries are either classified as “upper-middle-income” countries by the World Bank or account for more than 0.25 percent of world goods exports, as reported by the World Trade Organization.

As it did in the past, AFI is participating in the Coalition for GSP, which consists of companies and associations from many industries. We will continue to keep members apprised of developments related to GSP. At some point we may send a template members can use to submit comments on the issue. In the meantime, if you have specific examples of how GSP has helped your company and/or one or more of its suppliers, please share them with us.

On another GSP note, the USTR is conducting a review to determine whether Romania’s GSP benefits should continue. There’s concern that Romania gives preferential treatment to products of developed countries other than the U. S. and that such practice has, or is likely to have, a significant adverse effect on U.S. exports.