OAS

 
Generalized System of Preferences (GSP) Schemes
 
  Background
   

The Generalized System of Preferences (GSP) grant zero or reduced tariff rates to beneficiary countries. Least developed countries (LDCs) generally receive preferential treatment for certain products and deeper tariff cuts.

As stated in Resolution 21 (ii) taken at the UNCTAD II Conference in New Delhi in 1968,

"… the objectives of the generalized, non-reciprocal, non-discriminatory system of preferences in favour of the developing countries, including special measures in favour of the least advanced among the developing countries, should be:
(a) to increase their export earnings;

(b) to promote their industrialization; and

(c) to accelerate their rates of economic growth."

Countries granting GSP preferences notify these to the UNCTAD Secretariat. Information on GSP-granting countries and on beneficiary countries can be found on UNCTAD’s About the GSP page. Information below, regarding GSP preferences that benefit countries in the Americas has been compiled using UNCTAD and national sources. The date of compilation is indicated; some preferences may have changed.

GSP-granting countries: beneficiary countries in the Americas
Australia Beneficiary countries in the Americas (as of 2011): Haiti
Belarus Beneficiary countries in the Americas (as of 2011): Argentina, Bahamas, Barbados, Belize, Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominica, Dominican Republic, Ecuador, El Salvador, Guatemala, Guyana, Haiti, Honduras, Jamaica, Mexico, Nicaragua, Panama, Paraguay, Peru, Saint Vincent and the Grenadines, Suriname Trinidad and Tobago, Uruguay, Venezuela (non-OAS members: Anguilla, Aruba, British Virgin Islands, Montserrat).

Source: UNCTAD Generalized System of Preferences, List of Beneficiaries, 2011 PDF
Canada Beneficiary countries in the Americas (as of 2011): Antigua and Barbuda, Argentina, Bahamas, Barbados, Belize, Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominica, Dominican Republic, Ecuador, El Salvador, Grenada, Guatemala, Guyana, Haiti, Honduras, Jamaica, Mexico, Nicaragua, Panama, Paraguay, Peru, Saint Kitt and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Suriname Trinidad and Tobago, Uruguay, Venezuela (non-OAS members: Anguilla, Bermuda, British Virgin Islands, Montserrat, Netherlands Antilles, US Virgin Islands).

Source: UNCTAD Generalized System of Preferences, List of Beneficiaries, 2011 PDF
European Union The EU revised its GSP scheme. The new EU GSP comprises three arrangements:
  • The standard/general GSP arrangement

    Beneficiary countries in the Americas: Colombia, Honduras, Nicaragua.

  • The GSP+ enhanced preference scheme, available to countries that ratify and implement international conventions relating to human and labor rights, environment and good governance.

  • Beneficiary countries in the Americas: Bolivia, Costa Rica, Ecuador, El Salvador, Guatemala, Panama, Paraguay, Peru

  • Everything but Arms (EBA) arrangement, which grants duty-free, quota-free access to all products except for arms and ammunitions to least developed countries (LDCs)

    Beneficiary countries in the Americas: Haiti

Source: The EU’s Generalized Scheme of Preferences PDF
Japan Beneficiary countries in the Americas (as of 2011): Antigua and Barbuda, Argentina, Barbados, Belize, Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominica, Dominican Republic, Ecuador, El Salvador, Grenada, Guatemala, Guyana, Haiti, Honduras, Jamaica, Mexico, Nicaragua, Panama, Paraguay, Peru, Saint Kitt and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Suriname Trinidad and Tobago, Uruguay, Venezuela (non-OAS members: Anguilla, Montserrat)
Korea Beneficiary countries in the Americas (as of 2013): Haiti

Source: Handbook on the Preferential Tariff Scheme of the Republic of Korea in favour of least developed countries, 2013 (Annex 1) PDF
New Zealand Beneficiary countries in the Americas (as of 2011): Antigua and Barbuda, Argentina, Bahamas, Barbados, Belize, Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominica, Dominican Republic, Ecuador, El Salvador, Grenada, Guatemala, Guyana, Haiti, Honduras, Jamaica, Mexico, Nicaragua, Panama, Paraguay, Peru, Saint Kitt and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Suriname Trinidad and Tobago, Uruguay, Venezuela (non-OAS members: Anguilla, Bermuda, British Virgin Islands, Montserrat, Netherlands Antilles, US Virgin Islands).

Source: UNCTAD Generalized System of Preferences, List of Beneficiaries, 2011 PDF
Norway Beneficiary countries in the Americas (as of 2011): Argentina, Bahamas, Barbados, Bolivia, Brazil, Colombia, Costa Rica, Dominica, Dominican Republic, Ecuador, El Salvador, Guatemala, Guyana, Haiti, Honduras, Jamaica, Nicaragua, Panama, Paraguay, Peru, Saint Lucia, Suriname, Trinidad and Tobago, Uruguay, Venezuela.

Source: UNCTAD Generalized System of Preferences, List of Beneficiaries, 2011 PDF
Russian Federation Beneficiary countries in the Americas (as of 2011): Antigua and Barbuda, Argentina, Bahamas, Barbados, Belize, Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominica, Dominican Republic, Ecuador, El Salvador, Grenada, Guatemala, Guyana, Haiti, Honduras, Jamaica, Mexico, Nicaragua, Panama, Paraguay, Peru, Saint Kitt and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Suriname Trinidad and Tobago, Uruguay, Venezuela (non-OAS members: Anguilla, Aruba, Bermuda, Montserrat, Netherlands Antilles)

Source: UNCTAD Generalized System of Preferences, List of Beneficiaries, 2011 PDF
Switzerland Beneficiary countries in the Americas (as of 2011): Antigua and Barbuda, Argentina, Barbados, Belize, Bolivia, Brazil, Colombia, Costa Rica, Dominica, Dominican Republic, Ecuador, El Salvador, Grenada, Guatemala, Guyana, Haiti, Honduras, Jamaica, Nicaragua, Panama, Paraguay, Peru, Saint Kitt and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Suriname, Trinidad and Tobago, Uruguay, Venezuela (non-OAS members: Anguilla, Aruba, Montserrat, Netherlands Antilles, St. Pierre and Miquelon, US Virgin Islands).

Source: UNCTAD Generalized System of Preferences, List of Beneficiaries, 2011 PDF
Turkey Beneficiary countries in the Americas (as of 2011): Antigua and Barbuda, Argentina, Bahamas, Barbados, Belize, Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominica, Dominican Republic, Ecuador, El Salvador, Grenada, Guatemala, Guyana, Haiti, Honduras, Jamaica, Mexico, Nicaragua, Panama, Paraguay, Peru, Saint Kitt and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Suriname, Trinidad and Tobago, Uruguay, Venezuela, (non-OAS members: Anguilla, Aruba, Bermuda, Montserrat, Netherlands Antilles, St. Pierre and Miquelon, US Virgin Islands).

Source: UNCTAD Generalized System of Preferences, List of Beneficiaries, 2011 PDF
United States The US GSP program was authorized under Title V of the Trade Act of 1974 and is subject to renewal by Congress. The program was most recently extended until July 31, 2013 and has not been renewed. The GSP program provides duty and quota-free access for about 3,500 products from 127 developing countries and an additional 1,500 products from 44 least-developed countries.

Beneficiary countries in the Americas (as of July 2013): Belize, Bolivia, Brazil, Dominica, Ecuador, Grenada, Guyana, Haiti, Jamaica, Paraguay, St Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Uruguay, Venezuela.

Source: USTR: United States Generalized System of Preferences Guidebook, July 2013 PDF

Other Preferential Schemes
Canada CARIBCAN

Beginning on June 15, 1986, Canada extended duty-free access to the Canadian market for most commodities originating in Commonwealth Caribbean countries. On November 28, 1986, a decision by the Contracting Parties to the General Agreement on Tariffs and Trade (GATT) waived until June 15, 1998, the provisions of paragraph 1 of Article 1 of the General Agreement, "only to the extent necessary to permit the Government of Canada to provide duty-free treatment to eligible imports of Commonwealth Caribbean countries benefiting from the provisions of CARIBCAN, without being required to extend the same duty-free treatment to like products of any other contracting party" (L/6102). CARIBCAN is scheduled to expire on December 31, 2013 and to be replaced by a CARICOM-CANADA free trade agreement.

Beneficiary countries: OAS: Antigua and Barbuda, the Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Jamaica, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Trinidad and Tobago; Non-OAS: Anguilla, Bermuda, the British Virgin Islands, the Cayman Islands, Montserrat, and the Turks and Caicos Islands.
United States US CBI

The United States provides preferential market access to a group of Caribbean Basin countries through the trade programs known collectively as the Caribbean Basin Initiative (CBI) . The CBI was launched in 1983 through the Caribbean Basin Economic Recovery Act (CBERA), and expanded in 2000 through the U.S.-Caribbean Basin Trade Partnership Act (CBTPA). The CBTPA entered into force on October 1, 2000 and continues in effect until September 30, 2020, or the date on which a free trade agreement as described in legislation enters into force between the United States and a CBTPA beneficiary country. The CBI is also affected by provisions in the US Trade Act of 2002, which harmonized apparel eligibility criteria among the Andean Trade Preferences Act, the African Growth and Opportunity Act, and the CBTPA programs and increased the upper limits for duty-free treatment of knit apparel articles and t-shirts from the Caribbean Basin.

Beneficiary countries in the Americas (as of January 2014): OAS members: Antigua and Barbuda, The Bahamas, Barbados, Belize, Dominica, Grenada, Guyana, Haiti, Jamaica, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, and Trinidad and Tobago. Non-OAS members: Aruba, British Virgin Islands, Curacao, Montserrat.

Eight countries are beneficiaries under CBTPA: Barbados, Belize, Guyana, Haiti, Jamaica, Panama, St. Lucia, and Trinidad and Tobago.

Source: USTR Offsite link and Tenth Report to Congress on the Operation of the Caribbean Basin Economic Recovery Act December 31, 2013 PDF
  HAITI – Hope Act

Additional preferences are granted to Haiti, the hemisphere’s only Least-Developed Country (LDC) through the Haitian Hemispheric Opportunity through Partnership Encouragement Act of 2006 (HOPE). The HOPE Act was extended through the Food Conservation and Energy Act of 2008 (also known as the ”Farm Bill”) which included an extended HOPE Act (HOPE II) and the Haiti Economic Lift Program of 2010 (HELP). The HOPE Act provided duty-free entry to the United State garments manufactured in Haiti.

HOPE II includes:
  • an extension of duty-free access to the U.S. market until 2018
  • an extension of eligible woven products from three years to 10 years;
  • an increase in the Tariff Preference Level (TPL) for woven and knit products from 50,000,000 to 70,000,000 square meter equivalent;
  • co-production with and direct shipment from the Dominican Republic; and
  • the inclusion of luggage, headgear, and sleepwear.
Sources:
  Andean Trade Preference Act

The Andean Trade Preference Act was enacted in 1991 to combat drug production and trafficking in the Andean countries: Bolivia, Colombia, Ecuador and Peru. The program offers trade benefits to help these countries develop and strengthen legitimate industries. ATPA was expanded under the 2002Trade Act, and is now called the Andean Trade Promotion and Drug Eradication Act (ATPDEA). The program offers duty-free treatment to certain imports from eligible countries, provided that the countries meet certain criteria. The ATPA has been extended through July 31, 2013.

Beneficiary countries: At the time of the 2011 re-authorization, only Colombia and Ecuador were eligible beneficiary countries. Colombia is no longer an eligible beneficiary country under the ATPA as of May 15, 2012, when the United States-Colombia Trade Promotion Agreement (CTPA) entered into force (19 U.S.C. 3805 Note). Unless renewed by Congress, the ATPA/ATPDEA will expire on July 31, 2013.

Sources:

 

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