US extends GSP

The US GSP Programme, which came to a temporary halt at the end of 2010 due to some domestic concerns, has now been extended till the end of 2013 and the US President is expected to sign the Reauthorization bill into law shortly, said the Commerce Department under the Industry and Commerce Ministry. The Commerce Department stresses that the GSP Programme will be officially reinstated 15 days after the US President signs the bill.

Once signed into law, the Programme will resume zero-duty tariff concessions to all GSP-entitled products on retrospective basis with effect from January 1, 2011. Under the GSP Programme, the US extends duty free market access for a wide range of products imported from 131 eligible developing countries, including Sri Lanka.

The value of GSP-entitled exports by Sri Lanka to the US market continues to remain below US $ 200 million per year, while apparel products, the principal export item to the US market fall outside the GSP benefits. Pneumatic rubber tires, plastic-based packing materials, rubber gloves, activated carbon, coir products, certain porcelain and china ware, rubber floor coverings, etc. are among the main Sri Lankan exports, which benefit under the US GSP Programme.