International Trade: Issues Concerning the Generalized System of
Preferences Program (Testimony, 06/20/94, GAO/T-GGD-94-174).

The Generalized System of Preferences Program eliminated tariffs on
imports from 145 Third World countries in order to promote development
through trade rather than through traditional aid programs. In 1992,
nearly $17 billion, or about three percent of all U.S. imports, entered
duty free under the program. U.S. duties foregone on these goods were
about $900 million. However, the cost to the U.S. government is pegged
at 75 percent of this amount due to tax revenue offsets, according to
the Congressional Budget Office. The value of duties foregone would
decrease with the implementation of the estimated 40-percent tariff
reductions negotiated under the Uruguay Round of the General Agreement
on Tariffs and Trade for products eligible under the General System of
Preferences Program. This testimony evaluates the program and presents
several matters for Congress to consider during the reauthorization of
the program, which is due to expire in September 1994.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  T-GGD-94-174
     TITLE:  International Trade: Issues Concerning the Generalized 
             System of Preferences Program
      DATE:  06/20/94
   SUBJECT:  International economic relations
             Developing countries
             Tariffs
             Import restriction
             Restrictive trade practices
             International trade regulation
             Foreign economic assistance
             Foreign trade agreements
             Foreign trade policies
             Customs administration
IDENTIFIER:  Brazil
             Dominican Republic
             Hungary
             Malaysia
             Thailand
             Turkey
             NAFTA
             North American Free Trade Agreement
             Mexico
             Generalized System of Preferences Program
             
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