[Public Papers of the Presidents of the United States: George H. W. Bush (1991, Book I)]
[April 25, 1991]
[Pages 429-430]
[From the U.S. Government Publishing Office www.gpo.gov]



Memorandum on Modifications of the Generalized System of Preferences
April 25, 1991

Memorandum for the United States Trade Representative

Subject: Actions Concerning the Generalized System of Preferences

    Pursuant to subsections 502(b)(4) and 502(b)(7) and section 504 of 
the Trade Act of 1974, as amended (the 1974 Act) (19 U.S.C. 2462(b)(4), 
2462(b)(7), and 2464), I am authorized to make determinations concerning 
the alleged expropriation without compensation by a beneficiary 
developing country, to make findings concerning whether steps have been 
taken or are being taken by certain beneficiary developing countries to 
afford internationally recognized worker rights to workers in such 
countries, and to modify the application of duty-free treatment under 
the Generalized System of Preferences (GSP) currently being afforded to 
such beneficiary developing countries as a result of my determinations.
    Specifically, after considering a private sector request for a 
review concerning the alleged expropriation by Peru of property owned by 
a United States person allegedly without prompt, adequate, and effective 
compensation, without entering into good faith negotiations to provide 
such compensation or otherwise taking steps to discharge its 
obligations, and without submitting the expropriation claim to 
arbitration, I have determined that it is appropriate to continue to 
review the status of such alleged expropriation by Peru.
    Second, after considering various private sector requests for a 
review of whether or not certain beneficiary developing countries have 
taken or are taking steps to afford internationally recognized worker 
rights (as defined in subsection 502(a)(4) of the 1974 Act (19 U.S.C. 
2462(a)(4))) to workers in such countries, and in accordance with 
subsection 502(b)(7) of the 1974 Act (19 U.S.C. 2462(b)(7)), I have 
determined that Benin, the Dominican Republic, Haiti, and Nepal have 
taken or are taking steps to afford internationally recognized worker 
rights, and I have determined that Sudan has not taken and is not taking 
steps to afford such internationally recognized rights. There-

[[Page 430]]

fore, I am notifying the Congress of my intention to suspend the GSP 
eligibility of Sudan. Finally, I have determined to continue to review 
the status of such worker rights in Bangladesh, El Salvador, and Syria.
    Further, pursuant to section 504 of the the 1974 Act, after 
considering various requests for a waiver of the application of section 
504(c) of the 1974 Act (19 U.S.C. 24e(c)) with respect to certain 
eligible articles, I have determined that it is appropriate to modify 
the application of duty-free treatment under the GSP currently being 
afforded to certain articles and to certain beneficiary developing 
countries.
    Specifically, I have determined, pursuant to subsection 504(d)(1) of 
the 1974 Act (19 U.S.C. 2464(d)(1)), that the limitation provided for in 
subsection 504(c)(1)(B) of the 1974 Act (19 U.S.C. 2464(c)(1)(B)) should 
not apply with respect to certain eligible articles because no like or 
directly competitive article was produced in the United States on 
January 3, 1985. Such articles are enumerated in the list of Harmonized 
Tariff Schedule of the United States (HTS) subheadings in Annex A.
    Pursuant to subsection 504(c)(3) of the 1974 Act (19 U.S.C. 
2464(c)(3)), I have also determined that it is appropriate to waive the 
application of section 504(c) of the 1974 Act with respect to certain 
eligible articles from certain beneficiary developing countries. I have 
received the advice of the United States International Trade Commission 
on whether any industries in the United States are likely to be 
adversely affected by such waivers, and I have determined, based on that 
advice and on the considerations described in sections 501 and 502(c) of 
the 1974 Act (19 U.S.C. 2461 and 2462(c)), that such waivers are in the 
national economic interest of the United States. The waivers of 
application of section 504(c) of the 1974 Act apply to the eligible 
articles in the HTS subheadings and the beneficiary developing countries 
set opposite such HTS subheadings enumerated in Annex B.
    These determinations shall be published in the Federal Register.

                                                             George Bush

                    [Filed with the Office of the Federal Register, 4:33 
                        p.m., April 25, 1991]

                    Note: The annexes which accompanied this memorandum 
                        were printed in the ``Federal Register'' of 
                        April 29. The related proclamation of April 25 
                        is listed in Appendix E at the end of this 
                        volume.