US trade measures to help South American and African nations
Friday, 14 November 2008
Merle D. Kellerhals from Washington
TWO trade liberalization measures that waive import duties from nations in the Andean region of South America and in Africa have been extended through the end of 2009.
"All our nations are carrying out a comprehensive plan of action to help unfreeze credit markets and restore confidence in our financial systems," President Bush said October 16 in a signing ceremony. "These are urgent short-term steps. In the long run, one of the best ways to restore confidence in the global economy is by keeping markets open to trade and investment."
Bush signed into law legislation that extends the Generalized System of Preferences (GSP) and the Andean Trade Preference Act, both of which were set to expire at the end of this year. The GSP is a programme to help developing countries expand their market presence in the United States and strengthen their economies.
The Andean trade pact waives duties on imports from Bolivia, Colombia, Ecuador and Peru in return for strengthened anti-drug cooperation. The measure limits the extension for Ecuador and Bolivia to six months, but allows an additional six-month extension if the two countries cooperate with U.S. anti-drug efforts.
However, Bush announced that he was suspending trade preferences for Bolivia until it improves its anti-drug cooperation. The suspension was made effective from October 31.
"Unfortunately, Bolivia has failed to cooperate with the United States on important efforts to fight drug trafficking. So, sadly, I have proposed to suspend Bolivia's trade preferences until it fulfills it obligations," Bush said.
The trade pact also provides for duty-free imports from the African nations of Lesotho, Kenya, Madagascar and Swaziland, and it also grants "least developed country" status to Mauritius, which allows the country to export garments to the United States without tariffs.
And the trade pact also amends the law implementing the Dominican Republic and Central America Free Trade Agreement to create a "two for one" textile and apparel allowance programme. When textile producers buy a certain quantity of U.S. fabric for apparel production in the Dominican Republic, they will receive a credit. The credits can be used by the producers to ship apparel to the United States duty-free regardless of the fabric's origin.
"Exports now make up a greater share of our gross domestic product than at any time in our history," Bush said. "Opening markets benefits our trading partners."
Bush also called on Congress to pass free trade agreements with Colombia, Panama and South Korea when its members return in November after the general elections. However, it is uncertain Congress will take up the trade measures.
(Courtesy: Bureau of International Information Programme, the US Department of State)
TWO trade liberalization measures that waive import duties from nations in the Andean region of South America and in Africa have been extended through the end of 2009.
"All our nations are carrying out a comprehensive plan of action to help unfreeze credit markets and restore confidence in our financial systems," President Bush said October 16 in a signing ceremony. "These are urgent short-term steps. In the long run, one of the best ways to restore confidence in the global economy is by keeping markets open to trade and investment."
Bush signed into law legislation that extends the Generalized System of Preferences (GSP) and the Andean Trade Preference Act, both of which were set to expire at the end of this year. The GSP is a programme to help developing countries expand their market presence in the United States and strengthen their economies.
The Andean trade pact waives duties on imports from Bolivia, Colombia, Ecuador and Peru in return for strengthened anti-drug cooperation. The measure limits the extension for Ecuador and Bolivia to six months, but allows an additional six-month extension if the two countries cooperate with U.S. anti-drug efforts.
However, Bush announced that he was suspending trade preferences for Bolivia until it improves its anti-drug cooperation. The suspension was made effective from October 31.
"Unfortunately, Bolivia has failed to cooperate with the United States on important efforts to fight drug trafficking. So, sadly, I have proposed to suspend Bolivia's trade preferences until it fulfills it obligations," Bush said.
The trade pact also provides for duty-free imports from the African nations of Lesotho, Kenya, Madagascar and Swaziland, and it also grants "least developed country" status to Mauritius, which allows the country to export garments to the United States without tariffs.
And the trade pact also amends the law implementing the Dominican Republic and Central America Free Trade Agreement to create a "two for one" textile and apparel allowance programme. When textile producers buy a certain quantity of U.S. fabric for apparel production in the Dominican Republic, they will receive a credit. The credits can be used by the producers to ship apparel to the United States duty-free regardless of the fabric's origin.
"Exports now make up a greater share of our gross domestic product than at any time in our history," Bush said. "Opening markets benefits our trading partners."
Bush also called on Congress to pass free trade agreements with Colombia, Panama and South Korea when its members return in November after the general elections. However, it is uncertain Congress will take up the trade measures.
(Courtesy: Bureau of International Information Programme, the US Department of State)