Press Releases
#048/06 December 12, 2006
Congress Approves GSP for Thailand Generalized System of Preferences
Washington – As one of its final acts, the 109th U.S. Congress approved legislation that extends for two years the Generalized System of Preferences (GSP). This program allows Thailand to export specified goods duty-free to the U.S. market. The program had been scheduled to expire on December 31, 2006.
The Senate passed the bill December 9 by a 79-9 vote as part of a larger legislative package. Earlier, the House of Representatives passed separate pieces of legislation with identical provisions.
The bill must be signed by the president to become law.
Congress created the GSP program as part of the Trade Act of 1974 to create economic opportunities in developing countries, while expanding the choices of American industry and consumers. The GSP program provides duty-free treatment for 3,400 products from 133 designated beneficiary developing countries and territories. Least-developed beneficiary developing countries (currently 42 of the GSP beneficiaries) can export an additional 1,400 articles to the United States duty-free under GSP.
The United States imported over $3.5 billion of products from Thailand under the GSP program in 2005. From January through September this year, the United States has imported $3.1 billion in GSP-eligible products from Thailand, reflecting a 24.6 percent increase over GSP imports during the same period in 2005. U.S. imports under GSP have comprised nearly 19 percent of total U.S. imports from Thailand YTD 2006.
U.S. Trade Representative Susan Schwab applauded the Congress’ approval of the legislation, saying, "I also welcome the Senate's solid bipartisan support for extending key trade preference programs that have promoted market-based development, allowing developing countries around the world to sell their products in the U.S. and enabling U.S. consumers to enjoy a wide selection of agricultural and manufactured products.”
For further information, please call Channarish Boonpharod at 02-205-4468 or Bussabonglahwan Pattaro at 02-205-4418.