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Proc 8467ProclamationObama · D Quiet signal

Proclamation 8467

To Modify Duty-Free Treatment Under the Generalized System of Preferences, and for Other Purposes

This proclamation modifies U.S. trade preferences by terminating GSP beneficiary status for Croatia and Equatorial Guinea (effective January 1, 2011), removing Cape Verde from least-developed country status, reinstating Maldives as a GSP beneficiary, extending duty-free agricultural treatment for Israel through December 31, 2010, and making technical corrections to rules of origin under NAFTA and other free trade agreements in the Harmonized Tariff Schedule.

Federal Register Open PDF 74 FR 69221

Impact dates

  1. Croatia and Equatorial Guinea GSP terminations effective

  2. Israel duty-free agricultural access under 2004 Agreement expires

  3. Cape Verde least-developed status termination effective; Maldives redesignation effective; Israel HTS modifications effective

Key directives

  • Terminate Croatia GSP designation effective January 1, 2011
  • Terminate Equatorial Guinea GSP designation effective January 1, 2011
  • Remove Cape Verde from least-developed beneficiary country list effective January 1, 2010
  • Redesignate Maldives as GSP beneficiary developing country
  • Extend Israel agricultural duty-free access through December 31, 2010
  • Make technical corrections to HTS rules of origin for NAFTA, USSFTA, USCFTA, and CAFTA-DR
  • Supersede inconsistent provisions of prior proclamations and Executive Orders

Timeline

Immediate

  • Proclamation signed December 23, 2009
  • Supersession of inconsistent prior provisions effective immediately

Near term (90d)

  • Maldives redesignation effective for entries on/after January 1, 2010
  • Israel duty-free agricultural access extended through December 31, 2010
  • Cape Verde least-developed status termination effective January 1, 2010
  • Trinidad and Tobago GSP termination technical rectifications effective

Long term

  • Croatia GSP termination effective January 1, 2011
  • Equatorial Guinea GSP termination effective January 1, 2011

Risks & tensions

  • Potential diplomatic friction with Croatia and Equatorial Guinea over graduation from GSP
  • Timing uncertainty: proclamation signed Dec 23, 2009 but some provisions retroactively effective Jan 1, 2010 (only 9 days later, creating implementation scramble)
  • Israel agricultural extension is temporary (through 2010), suggesting ongoing negotiation pressure
Proclamation 8467: To Modify Duty-Free Treatment Under the Generalized System of Preferences, and for Other Purposes · Executive Orders