WHAT IS THE GENERALIZED SYSTEM OF PREFERENCES (GSP) AND WHY DOES IT NEED TO BE REFORMED?
The GSP is the primary trade policy instrument that the United States has to change this situation. It was created to encourage the economic development of poor countries by lowering or waiving tariffs on certain exports from developing countries into the United States. However, the GSP is not benefitting Sub-Saharan Africa. Of the over $15 billion in U.S. imports that enter the Unites States under the GSP annually, Africa’s exports account for just one tenth of one percent. One reason is that the present legislation exempts from receiving tariff-free treatment the manufactured goods — such as textiles, clothing and footwear — that African countries would be most likely to export. Thus far neither Congress nor the Clinton administration has had the political will to stand up to powerful protectionist interests such as the textile lobby. WHAT YOU CAN DO… Your support is urgently needed to put pressure on Congress and the Executive Branch to reform the GSP when it is reeauthorized —
