[Code of Federal Regulations]

[Title 15, Volume 3]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 15CFR2007.8]



[Page 474-475]

 

                  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:

    (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



[[Page 475]]



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.