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FINANCIAL CHRONICLE™ » FINANCIAL CHRONICLE™ » will the extend of GSP effect to the mkt.

will the extend of GSP effect to the mkt.

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parackrama

parackrama
Senior Equity Analytic
Senior Equity Analytic
US extends GSP program till July 2013



Oct 18, Colombo: The United States congress has passed a reauthorization bill to extend the Generalized System of Preferences (GSP), which expired earlier this year, through 31 July 2013.

The GSP which provides duty-free treatment for goods produced in developing countries was temporarily suspended at the end of 2010.

The US President is expected to sign the Reauthorization Bill into law shortly.

The Department of Commerce of Sri Lanka under the Ministry of Industry and Commerce announced that the GSP Program will be officially reinstated 15 days after the US President signs the bill. It will be retroactively effective from January 01, 2011.

�Once signed into law, the Program will resume zero-duty tariff concessions to all GSP-entitled products on retrospective basis with effect from 1st January 2011," the Ministry said in a statement.

Sri Lanka benefited from GSP treatment on approximately $147 million of goods in 2010, the U.S. says.

The United States GSP program is designed to promote economic growth in the developing world, providing duty free treatment for over 4,800 products from 129 designated beneficiary countries and territories, including Sri Lanka.

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