Generalized System of Preferences

Generalized System of Preferences in the United States

Generalized system of preferences

Find more information on Generalized system of preferences in relation to the Customs Trade Law in the legal Encyclopedias.

Generalized system of preferences and the International Trade Law

Generalized System of Preferences Status Withheld in the History of U.S. Economic Sanctions Imposed against China

Note: the status of this economic sanction is: Active

Date of the sanction(s): JANUARY 1, 1976

Section 502(b)(1) of the Trade Act of 1974 requires any communist country to meet the following conditions for the President to designate it as a “beneficiary developing country,” to receive preferential treatment under the Generalized System of Preferences (GSP):

! the products of the country receive nondiscriminatory treatment (have met the requirements for MFN); ! the country must be a contracting party to the General Agreement on Tariff and Trade (GATT; now World Trade Organization, or WTO), and a member of the International Monetary Fund (IMF); and the country must not be “dominated or controlled by international communism.”

Some Observations

The above requirements are not waivable. Other waivable conditions in section 502(b) address the communist country's practices of nationalization, expropriation, and seizure of property (paragraph (4)); cooperation in arbitration (paragraph (5)); harboring international terrorists (paragraph (6)); and support of internationally recognized standards of workers rights (paragraph (7)). The withdrawal of MFN status in 1951 made China subject to this sanction, effective January 1, 1976 [14].

Sanctions by Authority:

Title V of the Trade Act of 1974 [P.L. 93-618; 19 U.S.C. 2461-2466]

Note: Based on the China: U.S. Economic Sanctions Report.

Concept of Generalized System of Preferences (GSP) in Foreign Trade

A definition of Generalized System of Preferences (GSP) in relation with foreign trade is provided here: A framework under which certain developing countries are given preferential tariff treatment to their manufactured goods.

Generalized System of Preferences

In Legislation

Generalized System of Preferences in the U.S. Code: Title 19, Chapter 12, Subchapter V

The current, permanent, in-force federal laws regulating generalized system of preferences are compiled in the United States Code under Title 19, Chapter 12, Subchapter V. It constitutes “prima facie” evidence of statutes relating to Customs Duties (including generalized system of preferences) of the United States. The reader can further narrow his/her legal research of the general topic (in this case, Trade Act of 1974 of the US Code, including generalized system of preferences) by chapter and subchapter.

Resources

Notes and References

  1. 14 The Generalized System of Preferences will expire on May 31, 1997, unless it is renewed or extended by Congress enacting legislation.

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See Also

Further Reading

  • Generalized system of preferences entry in the Dictionary of International Trade Law (Raj Bhala)
  • Generalized system of preferences entry in the Gale Encyclopedia of U.S. Economic History (Thomas Carson; Mary Bonk)
  • Generalized system of preferences entry in the Dictionary of International Trade
  • Generalized system of preferences entry in the Dictionary of International Trade: Handbook of the Global Trade Community (Edward G. Hinkelman)

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