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Philippine Tuna Retains Duty-Free Access To US ff

8 July 2008 Philippines

Five top export products from the Philippines will continue to enjoy duty-free access to the American market following the 2007 Annual Review of the Generalized System of Preferences.

US Trade Representative Susan C. Schwab said exports of tuna, beverage containers, ropes, batteries and photographic meters would keep their duty-free access, despite having exceeded export thresholds set by the US government.

This is because the US Congress has lifted the “competitive need limitations” that prevented a country's export from accounting for more than half of total US imports of that product.

Going beyond the limit would have meant the removal of the duty-free access as provided by the US Generalized System of Preferences, which would have adversely affected the exports of these five products, valued at a combined $130 million in 2007.

The US GSP was adopted in 1974 and provides duty-free treatment for nearly 5,000 products exported to the United States from 132 developing countries that benefit from the program.

Based on the 2007 yearly review, the Philippines accounts for 55.8 percent of tunas and skipjack, not in airtight containers, not in bulk or in containers weighing over 6.8 kilos each, which are shipped to the United States.

The total for the five product lines represent imports valued at P657.25 million based on 2007 figures.

“Congress created the GSP program to serve as a bridge for developing countries as they increase their participation in the global trading system,” Schwab explained.

“The GSP program has helped to promote development and reduce poverty in the developing countries while expanding our bilateral trade,” she added. “It has also helped make the United States one of the world’s most open economies to products of developing countries.”

However, the USTR said the Philippines “remain(ed) under active scrutiny because of concerns regarding workers rights” and that this could affect petitions to withdraw or limit the Philippines’ GSP benefits.

Each year, the United States conducts an annual review to determine if there are certain imports currently eligible for GSP benefits that could compete effectively in the US market if imported at tariff rates applicable to goods of non-GSP beneficiary countries.