Background

The Office of the U.S. Trade Representative is reviewing the eligibility of India, Indonesia, and Kazakhstan for benefits under the Generalized System of Preferences based on concerns about their compliance with program requirements. These concerns are centered on market access for India (specifically in the dairy and medical device sectors), market access and services and investment for Indonesia, and worker rights for Kazakhstan. A public hearing and comment period for these reviews will be announced later.

USTR states that these reviews are based on the new triennial GSP country eligibility assessment process announced in October 2017 as well as GSP country eligibility petitions. For each of the 25 Asian and Pacific island GSP beneficiaries covered in the first assessment period, USTR and other federal agencies examined the country’s policies and practices related to each of the 15 statutory GSP eligibility criteria, including respecting arbitral awards in favor of U.S. citizens or corporations, combating child labor, respecting internationally recognized worker rights, providing adequate and effective intellectual property protection, reducing barriers to services trade and investment, and providing the U.S. with equitable and reasonable market access.

According to USTR, the next GSP assessment process will start this fall and cover beneficiary countries in Eastern Europe, the Middle East and North Africa, and the Western Hemisphere.

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