US announces results of annual GSP review

The U.S. Government on June 30 announced that it has accepted a petition to review worker rights in Sri Lanka.

The U.S. Generalized System of Preferences (GSP), a program designed to promote economic growth in the developing world, provides preferential duty-free treatment for over 3,400 products from 131 designated beneficiary countries and territories, including Sri Lanka. Sri Lanka benefited from GSP treatment on $116 million of goods in 2009. Products covered under the GSP program include machinery, electrical goods, chemical products, agricultural products, jewellery and much more.

Most textiles and apparel are not eligible for preferential benefits under the program.

In 2008, as part of the annual review process, the American Federation of Labour and Congress of Industrial Organizations (AFL-CIO), an American trade union, filed a petition with the US Government requesting a review of worker rights in Sri Lanka. The AFL-CIO resubmitted an updated petition last year.

Any person may file a request to review the designation of any beneficiary country with respect to any of the designation criteria. The US Embassy shared the document with the Government of Sri Lanka several months ago.

The U.S. Government's acceptance of the petition begins the following process:

n There will be a public hearing, likely held in August, to discuss the worker rights issues raised by the AFL-CIO petition. The Government of Sri Lanka will be invited to participate in the hearing.

n Beginning before the hearing, the United States and Sri Lankan government will engage in a dialogue on any areas of concern with respect to worker rights.

Acceptance of the petition is not a decision to revoke GSP nor does it set a deadline for a decision on action on GSP privileges.

It is the beginning of a formal, collaborative process to work with the Sri Lankan government to address the concerns in the petition and work to improve support of and adherence to worker rights. GSP privileges will continue throughout the process. The USG has a strong working relationship with the Government of Sri Lanka on labour issues. As an example of our productive working relationship, the U.S. Government has recently sponsored a labour program, administered through the International Labour Organization.

This program emphasizes a tripartite dialogue on labour issues with the Government of Sri Lanka, employers and unions.