Generalized System of Preference (GSP)
What is the GSP?
The U.S. Generalized System of Preference (GSP) trade program promote stable supply chain and economic growth by providing duty‐free entry to the U.S. market for goods imported from designated beneficiary such as Pakistan. Plastic products from Pakistan are eligible to enter the United States duty‐free under the GSP program.
From Pakistan, U.S. businesses imported $195 million worth of products under the GSP program in 2012.
GSP is critically important to the promotion of American values to other countries and crucial to U.S. small businesses, many of which rely on the program’s duty savings to stay competitive. “With the GSP initiative the U.S. government has designated Pakistan as a preferred country for manufacturing and import.” (ustr.gov)
How does the GSP Benefit you?
A1 Plastics benefits heavily from GSP due to Duty-free import of finished plastic goods into the U.S. which means that we have yet another edge allowing us to provide our clients with high quality products at lower costs along with being a preferred trade partner for The United States of America. The two uniquely exclusive ways we decrease our costs are, first, as a beneficiary of the GSP program and second, the prime location of our manufacturing facility at The Export Processing Zone. We take full advantage of the benefits provided by both The Export Processing Zone and GSP, to continue providing prices other manufacturers just cannot match.
U.S. & Pakistan Trade Facts
- According to the Department of Commerce, “U.S. exports of goods to Pakistan supported an estimated 10 thousand [U.S.] jobs in 2015” (ustr.gov).
- “Pakistan was the United States’ 55th largest supplier of goods imports in 2017” (ustr.gov).
- U.S. goods imports from Pakistan totaled $3.6 billion in 2017, up 3.8% ($131 million) from 2016.
- U.S. Manufacturing Trade with Pakistan (imports) is up 67% from 2.1b (USD) in 2000 to 3.5b (USD) in 2017.
Latest News on GSP:
U.S. TERMINATES INDIA’S and TURKEY’S DESIGNATION AS BENEFICIARIES
“India’s termination from GSP follows its failure to provide the United States with assurances that it will provide equitable and reasonable access to its markets in numerous sectors…India has implemented a wide array of trade barriers that create serious negative effects on United States commerce” (3/04/19)(ustr.gov) .
Source: www.ustr.gov