In late September, the Office of the United States Trade Representative announced the outcome of the Generalized System of Preferences (GSP) Limited Product Review. GSP offers duty-free treatment for designated imports from 122 developing countries. The review found that Seychelles, Uruguay, and Venezuela had surpassed the income threshold to be beneficiary countries and will be phased out of the program beginning January 1, 2017. Seychelles will also lose eligibility for preferences under the African Growth and Opportunity Act (AGOA), which requires GSP beneficiary status.
Other changes include duty-free treatment for five upland cotton fiber products and the re-designation of three Ukrainian products and one Indonesian product as GSP eligible.
The GSP program previously expired on July 31, 2013, but was reauthorized earlier this year as part of the Trade Preferences Extension Act of 2015. The extended GSP Program is valid through December 31, 2017, and Congress made the extension retroactive back to July 31, 2013.