US extends RP’s GSP privilege

The US has decided to grant the Philippines continued GSP privilege up to Dec. 31, 2006.

This was reported recently to Trade and Industry Secretary Manuel Roxas II by Roseni Alvero, the country’s commercial attaché in Washington, D.C.

According to Alvero, the renewal of the GSP privilege of the Philippines and several other countries was contained in a rider to the US Omnibus Trade Bill which was signed into law by US President George Bush on Aug. 6 this year.

The US GSP or Generalized System of Preference is a scheme whereby the US grants preferential market treatment to a list of products from agricultural, fishery, primary industrial, manufactured and semi-manufactured goods.

Products included in the GSP enjoy zero tariff.

Alvero said there were two amendments to the GSP section of the US Trade Law of 1974.

"The first amendment pertains to the non-inclusion of countries which have not taken steps to support the efforts of the US to combat terrorism as a GSP beneficiary," Alvero said.

However, a country will not be prevented from being designated as a beneficiary country if the US President determines that such designation will be in the national economic interest of the US.

The second amendment, Alvero said, has some significance to the Philippines.

The second amendment adds the prohibition on the worst forms of child labor including all forms of slavery and practices similar to slavery such as forced or compulsory labor, recruitment of children for use in armed conflict, use of children in prostitution, pornography, drug production and drug trafficking, and employment of children in work likely to harm their health.

Child labor applies to all children under the age of eight.

"The US has in the past made statements concerning child labor in the Philippines," Alvero said.