GENERAL AGREEMENT ON RESTRICTED

L/5153/Add.922 June 1987

TARIFFS AND TRADE Limited Distribution

Original: English

GENERALIZED SYSTEM OF PREFERENCES

Notification by the United States

Addendum

In a communicattion dated 18 June 1987, the delegation of the UnitedStates has provided the following information regarding changes in theUnited States GSP scheme which will take effect on 1 July 1987. Thesechanges will be introduced as a result of the general and annual reviewsrequired by statute.

87-0944

L/5153/Add.9Page 2

SUMMARY OF ANNUAL CHANGES IN THE GENERALIZED SYSTEM OF PREFERENCES (GSP)

1. Changes resulting from the 1986 GSP Produot Review

The additionof new products to the GSP list -- As a result ofthe GSP product review, nine new items are being designated forGSP duty-free treatment, effective July 1, 1987. These itemsrepresent $21 million in newly-eligible trade. (See Annex I andTable 2.)

The removal of products from the GSP list --- No requests toremove products from. the GSP list were granted.

The removal ("graduation" ) of a country from eligibility withrespect to individual products -- Seven countries (Taiwan, Korea,Singapore, Brazil, Turkey, Mexico and Yugoslavia) will be graduatedfrom GSP eligibility on certain products in response to petitionsfiled by U.S. producers and trade associations, effective 1 July1987. Total tIade in items graduated is valued at $942 million.However, of this total, items valued at only $126 million will benewly excluded as a result of these actions. The remainder isineligible for GSP because trade has exceeded competitive needlimits. (See Annex II and Table 2.)

2. Other modifications

Redesignation of individual beneficiary developing countries forGSP benefits in specific item --- Individual countries previouslyexcluded from receiving GSP duty-free treatment for particularproducts may be redesignated for GSP benefits if their 1986shipments in individual items fell below last year's competitiveneed limits. Originally set at $25 million in the Trade Act of1974, the dollar value competitive need limit is adjusted annuallyto take into account changes in the U.S. Gross National Product.The dollar value competitive need limit established for importsin 1936 is $71,437,059 (S27,944,887 in the case where a countryhas been found, sufficiently competitive in the product).

Under this provision developing countries are being redesignatedfor GSP duty-free treatment on 30 products valued at $442 million,which represents 27.8 of the total amount of trade eligible forredesignation. The remaining 72.2 percent, or 101 items valued at$1.1 billion, are being graduated and thus are not being re-designated. Of the $442 million in trade redesignated. $408million was redesignated ads a result of competitive need waiversgranted in the GS_General Review. In last year's redesignationexercise, imports valued at $167 million were restored to GSPeligibility while $2.4 billion of beneficiary country trade wasdenied redesignation. (See Annex III and Table 3.)

De rninimis exemp-tions from the percentage competitive needProvision -- A de ninimis provision in the Trade Agreeinents Actof 1979 allows the President to waive the pernrntage competitive

L/5153/Add.9Page 3

need limit in cases where total U.S. imports of an item in 1986did not exceed $8,389,482. As a result of the de minimis provision,imports of 251 products valued at $283 million from individualbeneficiaries will be exempt from the percentage competitive needrule. The value of trade benefiting from this provision lastyear was $233 million. (See Annex IV and Table 4.)

The exclusion of exports of individual countries from GSP duty-free treatment for certain products because the competitive needceilings were exceeded -- Under the statutory competitive needprovisions, a country loses GSP duty-free treatment for a productif its shipments of the product in the preceding calendar yearequaled or exceeded 50 percent of the value of the total U.S.imports of the product (25 percent in the case where a countryhas been found sufficiently competitive in the product) or acertain dollar amount during the preceding calendar year ($71,437,059or $27,944,887 in the case where a country has been foundsufficiently competitive in the product).

Competitive need exclusions total approximately $18.6 billionbased on 1986 trade, as compared to the $13 billion affected bythe statutory exclusions last year. Of the $18.6 billion excluded,$3.8 billion consists of trade in items where a beneficiary islosing eligibility for the first time. As a result of waivers ofcompetitive need limits granted in the C-SP General Review itemsvalued at $870 million will retain or remain eligible for GSPnotwithstanding the fact that trade in these items exceeded thecompetitive need limits. (See Annex V and Table 5.)

ANNE

XI

NEWPRODUCTS

ADDED10IS

EESPAS

RESULT

THE

1986

ANNU

ALPRODUCT

REVIEWAND1986TRADE

CURR

ENT

CSP

lICILE

lWLICI3LC

DESCRIPTION

IMPORTS

COUN

TRIE

S

14,2

36,0

00

26,3

14,0

00

9]4.,

orce*

Taiwan.

gval

it

filter

tobacco,

notmmed

fitter

lebo

cco.

stempe

Abca

Cordawe,

strfid

lnar

tic

Aced

flr

thet

uore

Wvs

IRmeunidWare

*Str

onti

m,uneit

itie

Twit

cbes

,va

lued

eir

21Time

Swithces,

volued

over

52

*TIEPttSIMT

USMWE

ADETIMNl4tTlC

orfy0

WOMS

iiC

POMLC1IO*

A.?"

MAIVED1IE

501CaEtPtll1tVO

ILIf

CURR

ENTr

rIWs

173.

401

-.45

31S.

5sIS

.994

35L.

3

S13.

4?.46

15.62

nS.&

4

r Ittn1

GQ

Ul tnZa

ge4-) L/5153/A '.

TABLE

1:GSPELIGIBLE

TRAD

E.WASCOON1986 IMPORTS,

FOR

NEWPRODUCTSADD

&S?

ASARE

SULTOF

THE

1986

ANNUALPRODUCT

REVIEW

GSP-ELIGIBLE

ARGENTINA

.....

510.000

ItflPNiD* ........,

$1.000

11RAIR..............

,AS{

t',CO

CANt

tUOR

...................

sz.u

ss,.

tNl

EM1111F .

.....................

n.cas

C1tW4Wt1A

....

....

....

....

...

SI0.

D00

CQfSltRICc

.................

S5,4

010014M%"C

t~

..................

1.0...

,3

tIIC

.......

,....

112.000

DOM1J

RS..........

5373

*0wE

ROXG

K(M..........

1?,1

16.ov0

IMAi

(t......................

S6..

..10

fw)l~tl^........,

MMr

.....................

tJc

AcoA

5...........

........

KtWVA

*100

kct,"V

......................

s....

*o1Z

WIL(A,S

_E. ...............

P'IK

YAI(A

F.Siie,

O....................

t1.

DM

MALA

S11,11

.......................

50

rrx7

49Ca

o...............

oo

rAWI

UAJI

a............1..

,00

IMIXIC

.......,,.............

-it,I

DW.g

or

Slt1AA............

....

S2.1r.000

FIllIPPI1S511%

........$.

.1?080

SIIP

OQF..............,...*W.

OUR0

UAIMJ............

S11,

011.

000

TILAIJ

...........

..13

000D

O

IO

VAL............

lsS?

.m&.

100

aqU, L/5153/A Page5

Page

6L/51

53/Add.9 1-n l. CD

ANNEXII:

COUNTRIESCA

RRIE

DFROMGSP

ELIGIBILITYO

NCE

RTAI

NPRODUCTSAS

ARESULT

OFPEULTIONSSUC

NITT

EDINTHE

1986AN

NUAL

PRODUCT

REVI

EWAND

1986

TRADE

COUNTRY

mwFgm

Cur

ISI11

LtOlAL

2514.1

1UAM

T

IA

IUJ.

IA

IDM1

KaA,

IAIV~

tITA

IUA

IA1W1

mIlIco

WC.J

O5AV

IAL

TAIVA4

AIU

.M1

TAD1M

IMAM

w

".rV4

Z9,4

Il

2O.42Z

0.2

32.0

.31Z

21?.

791

29.51X

10.40

29.4

122l.t.r .

4

Sr4.

415

$11,.5,451

*1,n

?,9l

s14.642,419

$14

432,

%41

t13,

412,

261

tl.D

51,

14

$2.6

5.94

74

2A1,

M.94

8II

,1r4.vra

.iIT,196,2-

Io.

?,0$

.3,

6A3,

149

866,181,191

616*,

W

SU33

,658

,015

$4,6

11.3

09

OtSCIpT

I

Peper

PAi

stra

linw

rR1cwyIuslcyicl

acid

(Aiirin)

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ciff

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*outet,

not

*sn.rs,

buit

dins

.8brodifa,

tomrs,

CIlr

ejnan

dki

tc*e

nwere

ofIrea

cwst

evi,

vwtod

lfI0o

rcstett

1itt

fnrs

fsr

eIlctrical

Cwte

hlit

sElectronic

frettedatrirl~

vla4ca4

Itutruznts

Van-

totd

irl

Ovsirs

of

Iv"

other

than

took

Vosn

furn

itur

e,na

ptPa

rts

ofChairs

Otherfw

nitw

.wr

tvO

lher

Itsa

da,Fif

Retalf1f

ad

skelefti-

fotb

rell

es

figure.

areCurrmtly

wrIm

lebt

h

I(l

fl

z¶6.in~t~

410.

?742

1.0

453

2.ZZ

610.

CX

615.

0a

S61

3.C&

au.4.0

6$302

554

.cn

75.44

727.is

727.49

*U

zas

727.

41rz

F.r.

7¶1.

2015

etc.,

ofst

eal

TABLE2

:COUNTRY

TOTA

LSOF

1986

IMPO

RTSOF

ITEM

TOBE

CRADUAIEDFROMGSP

ELIGIBILITY

ASA

RESULT

OFVI

uONW

SUBMITTED

INTH

E19

86ANNUAL

PRODUC

TREVIEW

BRAZIL,,,,,.

14,251

,298

MEXI

CO..

....

....

....

....

16,187

,026

TAIUAS

....

....

....

....

.14

54,1

05,4

99TU

RKEY

....

....

....

..81,

530,43

3TOTAL..........

5942,226,344

L/5153/Add.9

L/5153/Add.9

Page8

ANNEX

III

GSP

COUN

TRIE

SEL

IGIB

LEFO

Rde

MIMIMIS

HAIVER

INCLUDIED ITEMS

FORMU

ICHWALVER

HILL

HUL

DEUTILIZED(H)

AND

1986

TRAD

ETSUS

COUNTR

Y17043

I704317613

18453

20C9

120

320

20320

20330

20647

20663 22236

2401

0

24030

24052

24052 25263

25265

25442

2544

2

PCI

31525

31535

3158

331590

31703

51907

3603

339

016

4069

641

108

41126 4123

1KR

4132

441

722

N41

723

41764

41790

DOMI

NICA

MBRAZIL

THAILAND

.

HONG

KONG

X-011

COUNTRY

TOTAL

REPU

BLIC

.

.........

.........

HUHU

URAS

....

....

....

HOND

URAS

....

....

....

IAIHAH.....

IAIHAH..............

IAII

I^. .

H..

...

..

..

..

IAI

All11..

....

....

....

IlAI W.

AN........

IP. I

IIAH

..............

1A

III,%

li..

....

BrlA

M..............

rRIA

tZIL

IA,

!AH..

....

....

....

II6A

1..............

1.zIL..............

IAl

IJ..............

U'r.X

ico

...

...

.

firXIi-

......

..

II.XIco

...

..

..

.

1;.ti?~I

..............

tillXI

C..

....

....

...

rb11,K

Io...........

IIIAlD............

711,

I.A4I

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....

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...............

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....

....

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KGIM

l...

....

...

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A,S1UT21..

15RA

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L..........

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SOUT1.

bR/A

II1.......

*...

*YI

UfUS

lAYI

A...

....

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PALt..

.........

K0ICA.

SUOUT1..

FMEX

IC,

.....

I0SAE

..........

DRAZ

TIL..........

BRAZIL

....

........

,65.QX

So.

IX53

.9X

55.4X

56.t

ix70.

Ix63

.1X

5C.*-X

,6.7X

,65.

CX39.4K

,q9.9t

98. 0o

77.2

x50.5x

,CGO

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,7.41

7Q.4

r

,0.

9K,76.

, 83.

1.9

1.6K

97.lr

C1,

%

93.1

97.6

x

53.1x8

t8.6

X59.

ZIx

U9.l~x

52.3

x

81.9x

3!aX

71.8

XI0.

ox

*2,6

22.OC

C$1

!),0.ON

S9,

1119

1661

525

43,35

9,20

1$7

1.?Z9

$i%5

.6"

1,1

.219.8aI

$1.6

.sV,

CIS

$1.6C,

4.68

4z83

.2

1,4

$544

4e4.

91,1c,0Th

$3.90

0,59?

*Z,852

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14

13,

5q

*11.

3,/?

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5~~

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2,676

II!,78

tX3

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106

134

$159

2A5

022 5

7,t5

5

.1520.515n

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$1C6,13

of20159,25

.02

64,3'7,5

O.65

,391

0122

,I1A3

* 56*.

1

$4a

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120,

55,?

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64,.720

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ANNEX

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COUN

TRIE

SEL

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FOR

deMINIMIS

HAIV

ERINCLUDINGITEMSFOR

WHICHHAIVER

WILL

NOT

BEUTILIZED(X)

AND19

86TR

ADE

ISUS

COUNTRY

10586

13040

1358

013560

13640

13620

13622

13640

N13

661

13677

13693

1369

7

13702

1377

1137

8813

771

157815

1402

114056

1450216st

1460

114

735

14960

1520

01496

0

15940

15200

MR15

254

15445

15460

16169

16175

1612

416

211

1681

516

949

17040

x-TOT

COUNTRY

TOTA

L

ISRA

EL.

.............

89.0x

THAI

LAND

..

100.

OxARGENTINA...........89

-7x

MEXI

CO.

........

65.1x

MEXICO

..............

528x

MEXICO.

........

50.9:

ELSALVADIR.

.........

54.71

MEXI

CO.

.,,,,,,,

54.91

DOMINICAN

REPU

BLIC

....41

.0x

MEXI

CO............

96.1x

MEXICO........,.,.97.7x

HUND

URAS.

.......

58.:3X

MEXI

CO........

,92

.91

MEXICO

.......,.

.58.7t

MEXI

CO......

74.4

fGU

ATEL

A...

....

....

51.-

lI1kIRAti...,.

........

7s.,0

rDU

MINI

CAN

REPUILIC..

97.1r

MeX

l(: .............,,95.5

X4"IEXICO..

...

...

771i

JAMA

ICA.

..51

.2r

DOM1INICANIREPLIC

97.31

DDMI

N4IC

AURE

PUIL

IC..

61.Si

COSIA

RICA

..........

91.8

:ME

XIC

O..

..

..

J6.4:

ISRAEL..........8.41

DEOMINICAN

AfrVELIC..

56.O1

MEXICO

....

74.71

lAIHAH

....

5,.4

]rARGENTINA..

27.3

1DI

CIIH

ICAN

4REPUBLIC..*4.91

JAM&ICA.........,.56.4:

MEXICO.

.........

76.12

GAATI'KALA

...........

269.2

MEXICO

............

53.0

:TI

IAIiAD............

35.71

ECUADOR..

....

.....

4.4r

CYPRUS..........

....

51.1t

BRAZIL

...........

47.8

tDC

MINI

CAN

NEEI

JILI

C..

81.9

rTAIWAN.....

,52.21

TAIWJA

N..............

59.S

THlA

ilAN

D>..

....

,,..

66.2

:TU

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............

71.11

15RAELI

...

,55

.2t

KORE

A,SD

J1...

54.6

ICUN

KtY..

,2.4

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.......

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ANNEX

V

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DESCRIPTION

CLASS

GLOBES

AND

SHADES

GLAS

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LUMI

NATI

NGAND

RE-FLECTION

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ANDPARTIS,NEW

GLASS

CHRISTNAS

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MENT

S,EXC.

SEADS,

OR$7.50

PER

GROSS

GLAS

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L/5153/

Page

22

ANNEX

V

'OSP

CONITRIES

EXCEFOING

COMPET

ITIVENE

EDLIM

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NEW

EXCL

USIO

NS(Z)

AND

1986

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ANNEX

V

*OSP

COUNTIRES

EXCU

TEDN

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NEED

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WEXC

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L/5153/Add.9 Page25

TABL

ES'CO

UBTR

YSUBSMARYOF

TOTALCOUNTRYTRADEEXCLUDED

FROM

GSPBEC

AUSE

COMPETITIVE

NEEDLIMITS

EXCEEDEOIN1689ANDTR

ADEFORITEMSNHICHARE

NEW

EXCLUSIONS

TOTAL

COMPETITIVE

NEED

EXCLUSIONS:

ARmr

UTI

r.........

Dkil

ff^.

....

....

....

.DR

11......

acltE..............

COLUMIA............

IDOI

ICAN

REPUBLIC..

IllUG

KOM...........

INDIA..........D....

L0EA.SC

H........

&xiC

e............

SINGAPORE

.........o

TAI

A....N.........

TIAILAND............

TURK

EY..

....

....

....

VENE

ZUEt

A...

....

....

TYUGOStAIA...V......

7WAL

$2,414,953

$134,065,416

$953

,051

,352

$?31.5^4,211

$75,

758,

582

$99,

281.6

16$l

.55

3,1

UJ,5

tZ'4.525.571.

$2,

55,ZS4.596

*4.

.334,

104

*193,220,414

n7,9

72,2

88,6

45$72,

21*.

96*

t1l,

464,

664

$58,

803,

539

"*6182,101

ols.

ayWp970752

WOOEX

CLUS

IMSo

ARAILL..............

HOWK

...........

KOREA,SWJ

I...

....

.1EXtCO

..............

SI

APORf.........

TAIK .....

.

111AtnD............

YUGO

SLAV

ILA.

....

...

TOTAL

$sdl'4t&'59,

$S21

,022

.S3S

*6674.55,252

*660

,377

,085

OS.415,786

I1,5

16.5

28.2

61tZ7221

0.940

66.61a2.161

$3,743o.96.335

L/51

53

Page