[Federal Register Volume 59, Number 22 (Wednesday, February 2, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-2300]


[[Page Unknown]]

[Federal Register: February 2, 1994]


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OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

 

Generalized System of Preferences; Information on Imports During 
First 10 Months of 1993; Opportunity for Public Comment; Disposition of 
the Review of Worker Rights Practices in Costa Rica and Paraguay in the 
1993 Annual GSP Review

AGENCY: Office of the United States Trade Representative.

ACTION: Notice.

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SUMMARY: This notice informs the public of certain import statistics 
for the period from January through October 1993 and affords the public 
an opportunity to comment on certain discretionary decisions the 
President may make with respect to the Generalized System of 
Preferences (GSP) program. These decisions concern: (1) The GSP 
``competitive need'' limits set forth in section 504(c) of the Trade 
Act of 1974, as amended (the ``1974 Act'') (19 U.S.C. 2464(c)); (2) the 
``de minimis waiver'' authority set forth in section 504(d)(2) of the 
1974 Act; and (3) the redesignation authority set forth in section 
504(c)(5) of the 1974 Act. Presidential decisions concerning the 
application of competitive need limits and other product-related 
decisions stemming from the 1993 Annual Review are expected to be 
announced in April, and implemented on July 1, 1994. This notice also 
announces the successful disposition of the review of worker rights 
practices in Costa Rica and Paraguay in the 1993 Annual GSP Review.

FOR FURTHER INFORMATION CONTACT: GSP Subcommittee, Office of the United 
States Trade Representative, 600 17th Street NW., room 517, Washington, 
DC 20506. The telephone number is (202) 395-6971.

SUPPLEMENTARY INFORMATION:

I. Competitive Need Limits

    Pursuant to section 504(c), any GSP-eligible beneficiary country 
that exported to the United States during the most recent calendar year 
a quantity of any one GSP eligible article in excess of (1) $25 million 
indexed to the nominal growth of U.S. Gross National Product (GNP) 
since 1974, or (2) 50 percent of the value of total U.S. imports of the 
article, is to be removed from GSP eligibility with respect to that 
article not later than July 1 of the next calendar year. The 
preliminary estimate of this dollar limit, subject to revision, is 
$107,320,423 for calendar year 1993.

II. Reduced Competitive Need Limits

    Pursuant to section 504(c)(2) of the 1974 Act, a general review of 
the GSP was initiated in 1985 and the results of the review were 
announced on January 2, 1987 (52 FR 389). The purpose of the general 
review was to determine whether beneficiary countries had become 
sufficiently competitive in GSP-eligible products, on a product and 
country specific basis. For beneficiaries found to be sufficiently 
competitive with respect to a product, the percentage competitive need 
limit was reduced to 25 percent and the dollar limit was reduced to $25 
million, indexed to the nominal growth of U.S. GNP since 1984. The 
preliminary estimate of this dollar limit, subject to revision, is 
$41,621,070 for calendar year 1993.

III. Discretionary Decisions

A. De Minimis Waivers

    Section 504(d)(2) of the 1974 Act permits the President to 
disregard the 50 percent ``competitive need'' limit with respect to any 
eligible article if the value of total imports of the article during 
the most recent calendar year did not exceed $5 million, indexed to the 
nominal growth of U.S. GNP since 1979. The preliminary estimate of the 
de minimis level, subject to revision, is $12,553,356 for calendar year 
1993.

B. Redesignation of Eligible Articles

    If a country is no longer a beneficiary developing country with 
respect to an eligible article because imports exceeded the competitive 
need limits in a prior year, then, pursuant to section 504(c)(5) of the 
1974 Act, the President may redesignate the beneficiary developing 
country with respect to the eligible article if imports do not exceed 
the competitive need limits in a subsequent year.

IV. Implementation of Competitive Need Limits, Waivers, and 
Redesignations

    A proclamation will be issued to be effective July 1, 1994, making 
the adjustments to the list of eligible articles that are required by 
section 504(c) of the 1974 Act and announcing the discretionary 
decisions referred to in this notice, on the basis of official data 
covering all of calendar year 1993.
    It should be emphasized that the information set forth below covers 
only the first 10 months of 1993. Partial year data is being published 
now to provide the maximum possible advance indication of adjustments 
that may be made to meet the requirements of section 504(c) of the 1974 
Act and to afford the earliest opportunity for comment on the possible 
discretionary decisions.
    List I below shows specific GSP-eligible articles for beneficiaries 
which have already exceeded estimated competitive need limitations 
(i.e., a beneficiary supplied over $107,320,423 or $41,621,070 in the 
case where a beneficiary has been found sufficiently competitive in the 
product, during January-October 1993) or have been graduated from the 
GSP in early years pursuant to the President's discretionary authority.
    List II below shows beneficiaries which are approaching the 
competitive need limitations (i.e., a beneficiary accounted for over 42 
percent of the value of total U.S. imports and/or over $85,856,338 
million or in the case where a beneficiary has been found sufficiently 
competitive, over 21 percent and/or $33,296,856 million during January-
October 1993).
    List III below shows beneficiaries which, despite accounting for 
more than 50 percent (or 25 percent in the case of a beneficiary found 
sufficiently competitive in a product) of the value of total U.S. 
imports of an article, may be eligible to receive GSP benefits through 
the de minimis waiver (i.e., where a beneficiary accounted for more 
than the applicable percentage limit but the value of total U.S. 
imports of the item was less that $12,553,356 during January-October 
1993).
    List IV below shows articles from beneficiaries which are currently 
ineligible for GSP duty-free treatment but which may be eligible for 
redesignation to GSP status pursuant to the President's discretionary 
authority (i.e., a beneficiary accounted for less than 50 percent, or 
25 percent in the case of products for which it was found sufficiently 
competitive, of the value of U.S. imports and the value of U.S. imports 
of the article from the beneficiary developing country was less than 
the applicable dollar limit during January-October 1993). This list 
does not include articles from India which do not receive GSP treatment 
as a result of Presidential Proclamation 6425 of April 29, 1992 (57 FR 
19067), 6446 of June 15, 1992 (57 FR 26969) or 6447 of June 15, 1992 
(57 FR 26981).

V. Public Comments

    All written comments with regard to the decisions summarized above 
should be addressed to: GSP Subcommittee, Office of the U.S. Trade 
Representative, 600 17th Street NW., room 517, Washington, DC 20506. 
All submissions must be in English and should conform to the 
information requirements of 15 CFR 2007. Furthermore, each party 
providing comments should indicate on the first page of the submission 
its name, the relevant Harmonized Tariff Schedule subheading(s), the 
beneficiary country or territory of interest, and the type of action 
(i.e., the use of the President's de minimis waiver authority, etc.) in 
which the party is interested.
    A party must provide fourteen copies of its statement which must be 
received by the Chairman of the GSP Subcommittee no later than 5 p.m., 
Wednesday, March 2. Comments received after the deadline will not be 
accepted. If the comments contain business confidential information, 
fourteen copies of a non-confidential version must also be submitted. A 
justification as to why the information contained in the submission 
should be treated confidentially must be included in the submission. In 
addition, the submissions containing confidential information should be 
clearly marked ``confidential'' at the top and bottom of each page of 
the submission. The version that does not contain confidential 
information should also be clearly marked, at the top and bottom of 
each page, ``public version'' or ``non-confidential''.
    Written comments submitted in connection with these decisions, 
except for information granted ``business confidential'' status 
pursuant to 15 CFR 2007.7, will be available for public inspection 
shortly after the filing deadline by appointment only with the staff of 
the USTR Public Reading Room. Other requests and questions should be 
directed to the GSP Information Center at USTR by calling (202) 395-
6971.

VI. Disposition of the Review of Worker Rights Practices in Costa Rica 
and Paraguay in the 1993 Annual GSP Review

    In June 1993, petitions were filed with the Office of the United 
States Trade Representative that requested a review of worker rights 
practices in Costa Rica and in Paraguay in the 1993 Annual GSP Review. 
In October 1993, the petitions were accepted and a review was initiated 
to determine whether Costa Rica and Paraguay were complying with the 
worker rights provision of section 502 of the Trade Act of 1974 (19 
U.S.C. 2462), which requires beneficiary countries to have taken and be 
taking steps to afford internationally recognized worker rights (58 FR 
53959). At the time that the petitions were accepted for review, United 
States Trade Representative Kantor noted that, because actions to 
improve worker rights in Costa Rica and Paraguay were in process, the 
GSP reviews could be terminated at any time during the review period. 
In December 1993, Costa Rica and Paraguay were found to be taking steps 
to afford internationally recognized worker rights, as provided in 
section 502 of the Trade Act of 1974, because substantial positive 
actions had been taken by the Government of Costa Rica and the 
Government of Paraguay to resolve the allegations and shortcomings 
listed in the petitions. Accordingly, the GSP reviews were terminated.
Frederick L. Montgomery,
Chairman, Trade Policy Staff Committee.

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[FR Doc. 94-2300 Filed 2-1-94; 8:45 am]
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