Trade Preference Program Decisions Could Be More Fully Explained

Highlights

The Generalized System of Preference (GSP) Program permits duty-free entry of selected products from 140 developing countries and territories. In the past, GSP has been administered according to an equal application principle, which meant that decisions to add or remove products from preference eligibility were applicable to all rather than some beneficiaries. In a Presidential report on the first 5 years of operation of GSP, it was announced that the equal application principle will be modified to allow for selective designation; product eligibility decisions may now take into consideration a beneficiary's economic development level, its competitive position in that product, and the overall economic interests of the United States.

Recommendations

Recommendations for Executive Action

Agency Affected	Recommendation	Status
Other	The United States Trade Representative should as part of the "Annual Report of the President of the United States on the Trade Agreements Program," include an analysis of how the changes announced in the President's April 1980 GSP Report are, on a product-by-product basis, (1) graduating advanced beneficiaries from the GSP program and (2) redistributing benefits to mid-level and less develped developing countries.	Closed GAO has no information on the actions taken by the agency.
Other	The United States Trade Representative should give a fuller explanation to petitioners why their requests are denied. Petitioners should be informed not only of which factors influenced the President's decision but also how each factor was weighed in relation to the information received. The explanation should also address the rationale for findings reached; for example, relating each significant factor to the determination that an article is import sensitive or nonsensitive..	Closed GAO has no information on the actions taken by the agency.
Other	The United States Trade Representative should clarify the GSP regulations by explicitly stating that only domestic petitioners need to evaluate the impact that proposed additions would have on the domestic industry producing like or directly competitive articles in the United States.	Closed GAO has no information on the actions taken by the agency.
Other	The United States Trade Representative should include in the Federal Register notice announcing product eligibility decisions a brief explanation of the rationale used for making all such decisions.	Closed GAO has no information on the actions taken by the agency.
Other	The United States Trade Representative should prepare for public use a collection of his interpretations of GSP law and the law's relationship to past product eligibility decisions.	Closed GAO has no information on the actions taken by the agency.
Other	The United States Trade Representative should direct the Chairperson of the GSP Subcommittee to ensure that minutes of all Subcommittee meetings are kept.	Closed GAO has no information on the actions taken by the agency.
Other	The United States Trade Representative should establish a records management system which preserves the complete documentary history of each GSP-related petition.	Closed GAO has no information on the actions taken by the agency.

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Topics

Information Management

Developing countriesEligibility criteriaExportingForeign economic assistanceForeign trade agreementsInternational economic relationsInternational tradeProgram evaluationProgram managementTariffs