Proc 7748ProclamationG.W. Bush · R Quiet signal

Proclamation 7748

To Take Certain Actions Under the African Growth and Opportunity Act, and for Other Purposes

President George W. Bush designated Angola as a beneficiary sub-Saharan African country under AGOA with lesser developed country status, while terminating Eritrea and the Central African Republic's beneficiary status effective January 1, 2004, for failing to make continual progress on eligibility requirements. The proclamation also made technical corrections to the Harmonized Tariff Schedule and clarified the U.S. Trade Representative's publication functions under related trade preference acts.

Impact dates

  1. Termination of Eritrea and Central African Republic beneficiary status effective

  2. HTS modifications effective for articles entered or withdrawn from warehouse

Key directives

  • Designate Angola as eligible and beneficiary sub-Saharan African country under AGOA
  • Designate Angola as lesser developed beneficiary sub-Saharan African country for apparel preferences
  • Terminate Eritrea and Central African Republic as beneficiary sub-Saharan African countries effective January 1, 2004
  • Modify HTS general note 16(a) to add Angola and remove Eritrea and Central African Republic
  • Modify HTS note 2(d) to subchapter XIX of chapter 98 to remove Eritrea and Central African Republic from lesser developed list
  • Revise Proclamation 7616 paragraph (3) to clarify USTR publication function for ATPA and CBERA notices
  • Supersede inconsistent provisions of previous proclamations and Executive Orders

Who is ordered

Timeline

Immediate

  • Proclamation signed December 30, 2003
  • Angola designated as beneficiary sub-Saharan African country

Near term (90d)

  • Termination of Eritrea and Central African Republic designations effective January 1, 2004
  • HTS modifications effective for articles entered on or after January 1, 2004

Long term

  • Ongoing AGOA trade benefits for Angola contingent on continued eligibility compliance
  • Potential future termination reviews for all beneficiary countries

Risks & tensions

  • Economic disruption for Eritrean and Central African exporters losing preferential U.S. market access
  • Political friction with terminated countries over 'continual progress' determination criteria
  • Potential WTO or trade law challenges to unilateral beneficiary status changes
  • Vague statutory standard for 'continual progress' creates discretionary uncertainty
Proclamation 7748: To Take Certain Actions Under the African Growth and Opportunity Act, and for Other Purposes · Executive Orders