Last minute gift of “opportunity” before the holidays

Dec 23rd, 2009 5:58 PM UTC
By Mikiko Imai

Generalized System of Preferences — the largest U.S. trade preference program for developing countries, which allows producers in countries including the world’s poorest countries as well as emerging countries like Brazil and India to export approximately 4,800 goods in the U.S. free of duties — was extended last night for one-year. The extension of the program, which otherwise would have expired at the end of the month, was approved by the House last week, but was held up in the Senate over some unrelated issues. The Senate approved the one-year extension on 22 December.

Lawmakers have said they want to undertake major reform of all U.S. preferences programs next year, which is why they opted for a single-year extension. ONE will continue to engage in the reform discussions next year, and explore how the current Generalized System of Preferences could be reformed so that the program can be strengthened to increase the opportunity for the poorest countries while ensuring the gains that African countries have made under African Growth Opportunity Act (AGOA) are not undermined.

TAGS: Policy News