Should American GSP Programme not continue, new beneficiaries are already luring
Should the U.S. Congress fail to renew the GSP Generalised System of Preference before its expiration on July 31, 2013, China and Hong Kong will benefit from an increase in demand for their products in the American market
Under the GSP the USA grants duty free treatment to 5000 products to any of 127 designated beneficiary countries and territories. GSP includes most manufactured items, many types of chemicals, minerals and building stone, jewellery, many types of carpets, and certain agricultural and fishery products. Among the non-eligible products are most textiles and apparel, watches, and most footwear, handbags and luggage products. Thus, so far, imports from Hong Kong and China are not eligible for preferential duty treatment.
If the GSP does not pass Congress, China and Hong Kong could profit from diversification, away from GSP beneficiaries. GSP eligible products amounted to US 15322.5 million from January to October 2011, or 18.9 % less than in the same period in 2010. On the other hand, imports of non GSP goods imported increased in the same period by 16.3 %.Merchandise imported on other duty programmes and FTA Free Trade Agreements increased by 13.4 %, while goods subject to regular most favour nation duty treatment rose 17.0 %. U.S. imports from China improved 10.1 % while these from Hong Kong added 3.4 %.