USTR announces new enforcement priorities | KPMG | GLOBAL

USTR announces new enforcement priorities for GSP trade preference program

USTR announces new enforcement priorities

The Office of the U.S. Trade Representative (USTR) announced a new effort for determining whether countries that benefit from the Generalized System of Preferences (GSP) trade preference program meet the eligibility criteria.

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GSP program overview

Under the GSP program, certain products from 120 beneficiary developing countries and territories can enter the United States duty-free. To qualify for GSP, a beneficiary country must meet 15 eligibility criteria established by Congress—these requirements include respecting arbitral awards in favor of U.S. citizens or corporations, combating child labor, respecting internationally recognized worker rights, providing adequate and effective intellectual property protection, and providing the United States with equitable and reasonable market access.

New focus for verification of GSP program

According to a USTR release, the GSP trade preference program verification will include:

  • A “heightened focus” on concluding outstanding GSP cases 
  • A new interagency process to assess beneficiary country eligibility (the current petition receipt and public input process for country practice reviews will remain unchanged) 

The new additional process will involve a triennial assessment by USTR and other relevant agencies of each GSP beneficiary country’s compliance with the statutory eligibility criteria.  If the assessment of a beneficiary country raises concerns regarding the country’s compliance with an eligibility criterion, the U.S. administration may self-initiate a full country practice review of that country’s continued eligibility for GSP.  

The first assessment period will focus on GSP beneficiary countries in Asia. This will be followed by evaluations of GSP beneficiary countries in other parts of the world in the second and third years of this process. 

 

For more information, contact a professional with KPMG’s Trade & Customs practice:

Douglas Zuvich | +1 (312) 665-1022 | dzuvich@kpmg.com

Andrew Siciliano | +1 (631) 425-6057 | asiciliano@kpmg.com

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