[Code of Federal Regulations]
[Title 15, Volume 3]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 15CFR2007.8]

[Page 450-451]
 
                  TITLE 15--COMMERCE AND FOREIGN TRADE
 
      CHAPTER XX--OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE
 
  PART 2007--REGULATIONS OF THE U.S. TRADE REPRESENTATIVE PERTAINING TO
 ELIGIBILITY OF ARTICLES AND COUNTRIES FOR THE GENERALIZED SYSTEM OF
 PREFERENCE PROGRAM 
(GSP (15 CFR PART 2007))--Table of Contents
 
Sec. 2007.8  Other reviews of article eligibilities.

    (a) As soon after the beginning of each calendar year as relevant 
trade data for the preceding year are available, modifications of the 
GSP in accordance with section 504(c) of the Trade Act of 1974 as 
amended (19 U.S.C. 2464) will be considered.
    (b) General Review. Section 504(c)(2) of Title V of the Trade Act of 
1974 as amended (19 U.S.C. 2464(c)(2)) requires that not later than 
January 4, 1987 and periodically thereafter, the President conduct a 
general review of eligible articles based on the considerations in 
sections 501 and 502 of Title V. The purpose of these reviews is to 
determine which articles from which beneficiary countries are 
``sufficiently competitive'' to warrant a reduced competitive need 
limit. Those articles determined to be ``sufficiently competitive'' will 
be subject to a new lower competitive need limit set at 25 percent of 
the value of total U.S imports of the article, or $25 million (this 
figure will be adjusted annually in accordance with nominal changes in 
U.S. gross national product (GNP), using 1984 as the base year). All 
other articles will continue to be subject to the original competitive 
need limits of 50 percent or $25 million (this figure is adjusted 
annually using 1974 as the base year).
    (1) Scope of General Reviews. In addition to an examination the 
competitiveness of specific articles from particular beneficiary 
countries, the general review will also include consideration of 
requests for competitive need limit waivers pursuant to section 
504(c)(3)(A) of Title V of the Trade Act of 1974 as amended (19 U.S.C. 
2464(c)) and requests for a determination of no domestic production 
under section 504(d)(1) of Title V of the Trade Act of 1974 as amended 
(19 U.S.C. 2464(d)(1)).
    (2) Factors To Be Considered. In determining whether a beneficiary 
country should be subjected to the lower competitive need limits with 
respect to a particular article, the President shall consider the 
following factors contained in sections 501 and 502(c) of Title V:

[[Page 451]]

    (i) The effect such action will have on furthering the economic 
development of developing countries through expansion of their exports;
    (ii) The extent to which other major developed countries are 
undertaking a comparable effort to assist developing countries by 
granting generalized preferences with respect to imports of products of 
such countries;
    (iii) The anticipated impact of such action on the United States 
producers of like or directly competitive products;
    (iv) The extent of the beneficiary developing country's 
competitiveness with respect to eligible articles;
    (v) The level of economic development of such country, including its 
per capita GNP, the living standard of its inhabitants and any other 
economic factors the President deems appropriate;
    (vi) Whether or not the other major developed countries are 
extending generalized preferential tariff treatment to such country;
    (vii) The extent to which such country has assured the United States 
it will provide equitable and reasonable access to the markets and basic 
commodity resources of such country and the extent to which such country 
has assured the United States that it will refrain from engaging in 
unreasonable export practices;
    (viii) The extent to which such country is providing adequate and 
effective means under its laws for foreign nationals to secure, to 
exercise and to enforce exclusive rights in intellectual property, 
including patents, trademarks and copyrights;
    (ix) The extent to which such country has taken action to--
    (A) Reduce trade distorting investment practices and policies 
(including export performance requirements); and
    (B) Reduce or eliminate barriers to trade in services; and
    (x) Whether or not such country has taken or is taking steps to 
afford workers in that country (including any designated zone in that 
country) internationally recognized worker rights.