Generalized System of Preferences (GSP)
Program
Bill Jackson
Office of the U.S. Trade Representative
Executive Office of the President
April 2013
1
Presentation Summary
Overview of the U.S. GSP Program
Pakistan’s GSP exports to the
U.S.
How to increase Pakistan’s use of duty-free opportunities
2
GSP Program
Enhanced access to U.S. market
Expanded choices for U.S. industries & consumers
Provides duty-free treatment for about 3,500 products from Pakistan and 126 other countries
$19.9 billion in total U.S. GSP imports (2012)
GSP program authorized through July 2013
3
GSP Program:
Eligible Products
Eligible
Many manufactured items & inputs
Jewelry
Many agricultural products Chemicals
Minerals
Marble
Carpets
Ineligible
Most textiles & apparel
Watches
Footwear
Handbags
Luggage
Some gloves & leather goods 4
How many products are eligible for
GSP duty-free treatment?
Dutiable imports,
1,868, 17%
MFN duty‐free products, 3,868,
36%
GSP‐eligible imports (LDCs),
1,464, 14%
GSP‐eligible imports (all),
3,511, 33%
5
U.S. and Pakistan
Trade in 2012
U.S. imports from Pakistan: $3.6 billion
GSP imports: $195 million (5% of total imports) Overall GSP utilization rate: 81%
6
Pakistan’s Top GSP Exports in 2012
HTS chapter & description
71 – Gemstones, precious metals, & jewelry 39 – Plastics in primary forms & semi-finished & finished products
17 – Sugars & sugar confectionery
82 – Tools & cutlery made of base metals 63 – Textile articles, used textiles, & rags 42 – Leather goods
GSP tariff advantage Total GSP
Value
Up to 11%
$32.4 m
Up to 6.5%
$29.8 m
Up to 5.6%
$21.1 m
Up to 19%
$19.7 m
Up to 5.8%
$13.1 m
Up to 5.5%
$10.1 m
7
How to Qualify for Duty-Free
Treatment under GSP