The Generalized System of Preferences (GSP) Program Erland Herfindahl Deputy Assistant U.S. Trade Representative April 2017 1 Presentation Summary Overview of the U.S. GSP Program Algeria’s GSP exports to the U.S. 2 GSP Program Provides duty-free treatment for about 3,500  products from Algeria and 119 other countries $18.7 billion in total U.S. GSP imports (2016)  GSP program currently authorized through  December 2017 3 Annual GSP Review Process Add products to GSP for ALL countries or Least Developed Countries (if not excluded by law) Remove products: Competitive Need Limitations ($ value or % share)---can be waived; or U.S. industry petition Remove or add countries’ GSP benefits 4 Country Eligibility Criteria include: Expropriation/Arbitral Awards  Worker rights, including stopping  child labor Market Access for US exports  US Intellectual Property Rights  protected Full description and list in Guidebook  https://ustr.gov/sites/default/files/The%20GSP%20Guidebook.pdf  5 GSP Program: Eligible Products Eligible Ineligible Many manufactured  Most textiles & apparel items & inputs  Watches Jewelry   Footwear Some agricultural   products Some gloves & leather  goods Many Chemicals  Many agricultural Many Minerals   products Certain Carpets  6 How many HTS lines are eligible for GSP duty-free treatment? Dutiable lines: 1,941 17% MFN duty-free lines, 4,084 GSP-eligible lines 37% (LDCs), 1,519 14% GSP-eligible lines (all BDCs), 3,537 32% 9 GSP World Exports by Sector 2016 Natural Agriculture resources products Manufactured Products/Chemicals 8 Algeria’s Exports to U.S. Total Exports: $3.065 billion  No program claimed: $3.063 billion  Chapter 27 (Petroleum Sector):  $2.876 billion GSP eligibility: March 16, 2004  GSP: $1.5 million  9 Algeria GSP Exports by sector 2016 Manufactured Agricultural products 10