Title page
Contents
Summary 2
Introduction 5
Latest Developments 5
History, Rationale, and Comparison of GSP Programs 6
Economic and Political Basis 6
GATT/World Trade Organization Framework 7
Enabling Clause 8
Additional Commitment to Least Developed Countries 8
Comparison of International GSP Programs 9
EU Generalised Scheme of Preferences 10
Canada's General Preferential Tariff (GPT) 12
Japan's Generalized System of Preferences 12
United States GSP Implementation 13
Country Eligibility Criteria 13
Least-Developed Beneficiaries 16
Country Graduation from GSP 16
Reporting Requirements 17
Eligible Products 17
GSP Rules of Origin 18
GSP Product Coverage 19
Annual Reviews 20
Petitions to Add to or Remove Products from GSP 21
Competitive Need Limits (CNL) 21
CNL Waivers 22
De Minimis Waivers 22
Waivers for Articles Not Produced in the United States (NPUS) 22
Reviews of Country Practices 23
Effects of the U.S. GSP Program 24
Effects on Developing Countries 25
Economic Effects on the U.S. Market 26
Stakeholders' Concerns 27
"Special and Differential Treatment" 28
Erosion of Preferential Margins 28
Underutilization of GSP 29
Trade as Foreign Assistance 29
Conditionality of Preferences 30
Lower Costs of Imports 30
Options for Congress 31
Negotiate Trade Agreements with GSP Countries 31
Authorize GSP Only for Least-Developed Countries 32
Reform GSP 32
Expand Application of GSP 32
Restrict Application of Preferences 33
Appendix A. GSP Implementation and Renewal 34
Appendix B. GSP Beneficiary Countries 36
Author Information 37
Disclaimer 38
Table 1. Leading U.S. GSP Imports, 2022 20
Figure 1. Top 10 U.S. GSP Beneficiary Countries, 2020 15
Figure 2. Imports of Travel Goods, Handbags, and Wallets 18
Figure 3. Top 10 U.S. GSP Imports, 2022 19
Figure 4. U.S. Imports from GSP Beneficiary Countries 25
Table A-1. GSP Implementation and Renewal, 1974-2021 34
Table B-1. Beneficiary Developing Countries and Regions for Purposes of the Generalized System of Preferences 36