Memorandum on the Generalized System of Preferences

January 2, 1987

Memorandum for the United States Trade Representative

Subject: Actions Concerning the Generalized System of Preferences

Pursuant to sections 502(b)(8) and 504 of the Trade Act of 1974, as amended (the Act) (19 U.S.C. 2462(b)(8) and 2464), I am hereby acting to modify the application of duty-free treatment under the Generalized System of Preferences (GSP) currently being afforded to certain beneficiary developing countries, and to make findings concerning steps by certain beneficiary developing countries to afford internationally recognized worker rights to workers in such countries.

Specifically, I have determined, under the provisions of section 504(c)(2) of the Act and after taking into account the factors listed in sections 501 and 502(c) of the Act (19 U.S.C. 2461 and 2462(c)), that certain beneficiary developing countries have demonstrated a sufficient degree of competitiveness (relative to other beneficiary developing countries) with respect to particular eligible articles that section 504(c)(2)(B) should apply to such articles. Such countries are enumerated in Annex A opposite the Tariff Schedules of the United States (TSUS) items applicable to each article.

Second, under the terms of section 504(c)(3) of the Act, I am hereby waiving the application of section 504(c) with respect to particular eligible articles from specified beneficiary developing countries. I have received the advice of the United States International Trade Commission as to any industries in the United States which would likely be adversely affected by such waivers, and I have determined, based on that advice and on the considerations described in sections 501 and 502(c) of the Act, that such waivers are in the national economic interest of the United States. The countries to be afforded such waivers for particular eligible articles are enumerated in Annex B opposite the TSUS items applicable to each article.

Finally, after considering various private sector requests for review concerning worker rights in certain beneficiary developing countries, and in accordance with section 502(b)(8) of the Act, I have determined that the following beneficiary developing countries have taken or are taking steps to afford internationally recognized worker rights (as defined in section 502(a)(4) of the Act): Guatemala, Haiti, the Republic of Korea, the Philippines, Suriname, Taiwan, and Zaire. However, I have determined that Romania, Paraguay, and Nicaragua, previously designated as beneficiary developing countries, are not taking steps to afford such internationally recognized worker rights. Therefore, I intend to notify the Congress of the United States of my intention to remove Romania and Nicaragua from the list of designated beneficiary developing countries for purposes of the GSP, and to suspend the GSP eligibility of Paraguay. Finally, I am continuing to review the status of such worker rights in another beneficiary developing country, Chile.

These determinations shall be published in the Federal Register.

Ronald Reagan

[Filed with the Office of the Federal Register, 3:27 p.m., January 2, 1987]

Note: The memorandum and annexes were printed in the ``Federal Register'' of January 6.