Generalized System of Preferences; Information on Imports During First 10 Months of 1993; Opportunity for Public Comment; Disposition of the Review of Worker Rights Practices in Costa Rica and Paraguay in the 1993 Annual GSP Review

OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

Generalized System of Preferences; Information on Imports During

First 10 Months of 1993; Opportunity for Public Comment; Disposition of

the Review of Worker Rights Practices in Costa Rica and Paraguay in the

1993 Annual GSP Review

AGENCY: Office of the United States Trade Representative.

ACTION: Notice.

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SUMMARY: This notice informs the public of certain import statistics

for the period from January through October 1993 and affords the public

an opportunity to comment on certain discretionary decisions the

President may make with respect to the Generalized System of

Preferences (GSP) program. These decisions concern: (1) The GSP

``competitive need'' limits set forth in section 504(c) of the Trade

Act of 1974, as amended (the ``1974 Act'') (19 U.S.C. 2464(c)); (2) the

``de minimis waiver'' authority set forth in section 504(d)(2) of the

1974 Act; and (3) the redesignation authority set forth in section

504(c)(5) of the 1974 Act. Presidential decisions concerning the

application of competitive need limits and other product-related

decisions stemming from the 1993 Annual Review are expected to be

announced in April, and implemented on July 1, 1994. This notice also

announces the successful disposition of the review of worker rights

practices in Costa Rica and Paraguay in the 1993 Annual GSP Review.

FOR FURTHER INFORMATION CONTACT: GSP Subcommittee, Office of the United

States Trade Representative, 600 17th Street NW., room 517, Washington,

DC 20506. The telephone number is (202) 395-6971.

SUPPLEMENTARY INFORMATION:

I. Competitive Need Limits

Pursuant to section 504(c), any GSP-eligible beneficiary country

that exported to the United States during the most recent calendar year

a quantity of any one GSP eligible article in excess of (1) $25 million

indexed to the nominal growth of U.S. Gross National Product (GNP)

since 1974, or (2) 50 percent of the value of total U.S. imports of the

article, is to be removed from GSP eligibility with respect to that

article not later than July 1 of the next calendar year. The

preliminary estimate of this dollar limit, subject to revision, is

$107,320,423 for calendar year 1993.

II. Reduced Competitive Need Limits

Pursuant to section 504(c)(2) of the 1974 Act, a general review of

the GSP was initiated in 1985 and the results of the review were

announced on January 2, 1987 (52 FR 389). The purpose of the general

review was to determine whether beneficiary countries had become

sufficiently competitive in GSP-eligible products, on a product and

country specific basis. For beneficiaries found to be sufficiently

competitive with respect to a product, the percentage competitive need

limit was reduced to 25 percent and the dollar limit was reduced to $25

million, indexed to the nominal growth of U.S. GNP since 1984. The

preliminary estimate of this dollar limit, subject to revision, is

$41,621,070 for calendar year 1993.

III. Discretionary Decisions

A. De Minimis Waivers

Section 504(d)(2) of the 1974 Act permits the President to

disregard the 50 percent ``competitive need'' limit with respect to any

eligible article if the value of total imports of the article during

the most recent calendar year did not exceed $5 million, indexed to the

nominal growth of U.S. GNP since 1979. The preliminary estimate of the

de minimis level, subject to revision, is $12,553,356 for calendar year

1993.

B. Redesignation of Eligible Articles

If a country is no longer a beneficiary developing country with

respect to an eligible article because imports exceeded the competitive

need limits in a prior year, then, pursuant to section 504(c)(5) of the

1974 Act, the President may redesignate the beneficiary developing

country with respect to the eligible article if imports do not exceed

the competitive need limits in a subsequent year.

IV. Implementation of Competitive Need Limits, Waivers, and

Redesignations

A proclamation will be issued to be effective July 1, 1994, making

the adjustments to the list of eligible articles that are required by

section 504(c) of the 1974 Act and announcing the discretionary

decisions referred to in this notice, on the basis of official data

covering all of calendar year 1993.

It should be emphasized that the information set forth below covers

only the first 10 months of 1993. Partial year data is being published

now to provide the maximum possible advance indication of adjustments

that may be made to meet the requirements of section 504(c) of the 1974

Act and to afford the earliest opportunity for comment on the possible

discretionary decisions.

List I below shows specific GSP-eligible articles for beneficiaries

which have already exceeded estimated competitive need limitations

(i.e., a beneficiary supplied over $107,320,423 or $41,621,070 in the

case where a beneficiary has been found sufficiently competitive in the

product, during January-October 1993) or have been graduated from the

GSP in early years pursuant to the President's discretionary authority.

List II below shows beneficiaries which are approaching the

competitive need limitations (i.e., a beneficiary accounted for over 42

percent of the value of total U.S. imports and/or over $85,856,338

million or in the case where a beneficiary has been found sufficiently

competitive, over 21 percent and/or $33,296,856 million during January-

October 1993).

List III below shows beneficiaries which, despite accounting for

more than 50 percent (or 25 percent in the case of a beneficiary found

sufficiently competitive in a product) of the value of total U.S.

imports of an article, may be eligible to receive GSP benefits through

the de minimis waiver (i.e., where a beneficiary accounted for more

than the applicable percentage limit but the value of total U.S.

imports of the item was less that $12,553,356 during January-October

1993).

List IV below shows articles from beneficiaries which are currently

ineligible for GSP duty-free treatment but which may be eligible for

redesignation to GSP status pursuant to the President's discretionary

authority (i.e., a beneficiary accounted for less than 50 percent, or

25 percent in the case of products for which it was found sufficiently

competitive, of the value of U.S. imports and the value of U.S. imports

of the article from the beneficiary developing country was less than

the applicable dollar limit during January-October 1993). This list

does not include articles from India which do not receive GSP treatment

as a result of Presidential Proclamation 6425 of April 29, 1992 (57 FR

19067), 6446 of June 15, 1992 (57 FR 26969) or 6447 of June 15, 1992

(57 FR 26981).

V. Public Comments

All written comments with regard to the decisions summarized above

should be addressed to: GSP Subcommittee, Office of the U.S. Trade

Representative, 600 17th Street NW., room 517, Washington, DC 20506.

All submissions must be in English and should conform to the

information requirements of 15 CFR 2007. Furthermore, each party

providing comments should indicate on the first page of the submission

its name, the relevant Harmonized Tariff Schedule subheading(s), the

beneficiary country or territory of interest, and the type of action

(i.e., the use of the President's de minimis waiver authority, etc.) in

which the party is interested.

A party must provide fourteen copies of its statement which must be

received by the Chairman of the GSP Subcommittee no later than 5 p.m.,

Wednesday, March 2. Comments received after the deadline will not be

accepted. If the comments contain business confidential information,

fourteen copies of a non-confidential version must also be submitted. A

justification as to why the information contained in the submission

should be treated confidentially must be included in the submission. In

addition, the submissions containing confidential information should be

clearly marked ``confidential'' at the top and bottom of each page of

the submission. The version that does not contain confidential

information should also be clearly marked, at the top and bottom of

each page, ``public version'' or ``non-confidential''.

Written comments submitted in connection with these decisions,

except for information granted ``business confidential'' status

pursuant to 15 CFR 2007.7, will be available for public inspection

shortly after the filing deadline by appointment only with the staff of

the USTR Public Reading Room. Other requests and questions should be

directed to the GSP Information Center at USTR by calling (202) 395-

6971.

VI. Disposition of the Review of Worker Rights Practices in Costa Rica

and Paraguay in the 1993 Annual GSP Review

In June 1993, petitions were filed with the Office of the United

States Trade Representative that requested a review of worker rights

practices in Costa Rica and in Paraguay in the 1993 Annual GSP Review.

In October 1993, the petitions were accepted and a review was initiated

to determine whether Costa Rica and Paraguay were complying with the

worker rights provision of section 502 of the Trade Act of 1974 (19

U.S.C. 2462), which requires beneficiary countries to have taken and be

taking steps to afford internationally recognized worker rights (58 FR

53959). At the time that the petitions were accepted for review, United

States Trade Representative Kantor noted that, because actions to

improve worker rights in Costa Rica and Paraguay were in process, the

GSP reviews could be terminated at any time during the review period.

In December 1993, Costa Rica and Paraguay were found to be taking steps

to afford internationally recognized worker rights, as provided in

section 502 of the Trade Act of 1974, because substantial positive

actions had been taken by the Government of Costa Rica and the

Government of Paraguay to resolve the allegations and shortcomings

listed in the petitions. Accordingly, the GSP reviews were terminated.

Frederick L. Montgomery,

Chairman, Trade Policy Staff Committee.

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[FR Doc. 94-2300 Filed 2-1-94; 8:45 am]

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