Geo. S. Bush & Co., Inc. News Bulletin

Update on Renewal of the GSP Program

The Generalized System of Preferences (GSP) program expired on September 30, 2001 for all beneficiary countries except sub-Saharan (SSA) beneficiary countries designated under the African Growth and Opportunity Act (AGOA).

To date, this program continues to languish in Congress. Rep. DeMint has stalled the progress of GSP renewal as he leverages the promises made to him by House leadership to secure his vote for Trade Promotion Authority (TPA-formerly known as Fast Track). He was promised that certain textile procedures would be performed in the US in order for companies to qualify for benefits under the US-Caribbean Basin Trade Partnership Act (CBTPA) and the Andean Trade Preference Act (ATPA). Ways and Means Committee members strongly oppose this condition of qualification.

The Senate did have an economic stimulus bill (H.R. 3090) that would have included an extension for GSP. This bill is no longer being considered. While the Senate may attach GSP renewal to Trade Adjustment Assistance (TAA) or TPA or possibly another bill, this is not expected to happen before mid-March 2002.

For more information on GSP, please visit the US Customs website at www.customs.gov/travel/gsp.htm.

We will continue to update you as we get more information. If you have any questions, please do not hesitate to contact your Geo. S. Bush & Co., Inc. representative.