Background and Purpose of H.R. 3010 - GSP Renewal

Summary of Provision:

Title V of the Trade Act of 1974 grants authority to the President to provide duty-free treatment on imports of eligible articles from developing countries and territories, subject to certain conditions and limitations. This authority expired on September 30, 2001. H.R. 3010 would renew GSP for the period of October 1, 2001 through December 31, 2002. H.R. 3010 also will provide duty-free treatment for items imported after September 30 that would have qualified for GSP coverage if GSP had not expired.

Background:

Title V specifies criteria for determining GSP country and product eligibility and limitations on the extension of GSP treatment. The GSP program currently provides unilateral, non-reciprocal duty-free treatment to about 6200 articles from approximately 140 beneficiary developing countries and territories to assist their economic development and increase diversification of their economies through preferential market access. The statute sets forth conditions for designation as a beneficiary developing country.

The expiration of GSP on September 30 did not affect imports from sub-Saharan African countries. Section 114 of the The Africa Growth and Opportunity Act (P.L. 106-200), enacted on May 18, 2000, extended GSP benefits through September 30, 2008 for qualified sub-Saharan African countries.

October 3, 2001