ITC RELEASES REPORT ON LIKELY EFFECTS OF DUTY-FREE ENTRY FOR GOODS UNDER THE GSP

The U.S. International Trade Commission (ITC) today released a public version of its confidential report on the probable economic effects of providing duty free treatment under the Generalized System of Preferences (GSP).

The report, Advice Concerning Possible Modifications to the U.S. Generalized System of Preferences, 2006 Review, was requested by the U.S. Trade Representative (USTR).

As requested, the ITC provided advice as to the impact of granting waivers of the competitive need limits for Argentina for lithium carbonates and calcium silicon (HTS subheadings 2836.91.00 and 7202.99.20); for Brazil for refined copper cathodes and certain unalloyed copper wire rod (HTS subheadings 7403.11.00 and 7408.11.60); for India for cucumbers, including gherkins, certain hand- hooked carpets and other textile floor coverings, and certain color television reception apparatus (HTS subheadings 2001.10.00, 5703.10.20, and 8528.12.80); and for Thailand for radial bus or truck tires (HTS subheading 4011.20.10).

“Competitive need limits” represent the maximum import level of a product that is eligible for duty- free treatment under the GSP; once the limit is reached, trade is considered “competitive,” benefits are no longer needed, and imports of the article become ineligible for GSP treatment, unless a waiver is granted. With respect to the competitive need limit in section 503(c)(2)(A)(i)(I) of the 1974 Act, the Commission, as requested, will use the dollar value limit of $125,000,000.

The ITC submitted a confidential version of the report to the USTR on April 11, 2007.

Advice Concerning Possible Modifications to the U.S. Generalized System of Preferences, 2006 Review (Investigation No. 332-483, USITC publication 3919, April 2007) will be available on the ITC’s Internet site at http://hotdocs.usitc.gov/docs/pubs/332/pub3919.pdf. A CD-ROM of the report may be requested by calling 202-205-2000 or by writing the Office of the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436. Requests may also be faxed to 202-205-2104.

ITC general factfinding investigations, such as this one, cover matters related to tariffs or trade and are generally conducted at the request of the U.S. Trade Representative, the Senate Committee on Finance, or the House Committee on Ways and Means. The resulting reports convey the Commission’s objective findings and independent analyses on the subjects investigated. The Commission makes no recommendations on policy or other matters in its general factfinding reports. Upon completion of each investigation, the ITC submits its findings and analyses to the requester. General factfinding investigation reports are subsequently released to the public unless they are classified by the requester for national security reasons.