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Proc 8788ProclamationObama · D Quiet signal

Proclamation 8788

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

This proclamation suspends Argentina's duty-free trade benefits under the Generalized System of Preferences (GSP) for failing to enforce arbitral awards favoring U.S. citizens, while designating South Sudan as both a GSP beneficiary and least-developed beneficiary country. It also makes technical modifications to the Harmonized Tariff Schedule (HTS) to implement CAFTA-DR provisions affecting Dominican Republic-Mexico trade rules, extend Haiti apparel duty-free treatment, and correct prior proclamation errors.

Federal Register Open PDF 77 FR 18899

Impact dates

  1. Argentina GSP suspension effective; HTS modifications effective for articles entered/withdrawn

  2. South Sudan least-developed beneficiary designation effective; HTS modifications effective

  3. CAFTA-DR HTS modifications effective for goods entered/withdrawn (Dominican Republic-Mexico rule expiration)

  4. Technical corrections to HTS effective for goods entered/withdrawn

  5. Haiti apparel HTS modification effective for goods entered/withdrawn

Key directives

  • Suspend Argentina's GSP beneficiary developing country designation
  • Designate South Sudan as GSP beneficiary developing country
  • Designate South Sudan as least-developed beneficiary developing country
  • Modify HTS general note 4(a) to reflect Argentina suspension
  • Add South Sudan to HTS general note 4(a) and 4(b)(i)
  • Modify HTS to implement CAFTA-DR Appendix 4.1-B for Dominican Republic operations
  • Modify HTS to implement Haiti Economic Lift Program Act extension
  • Make technical corrections to HTS to conform to Harmonized System Convention
  • Amend paragraph (9) of Proclamation 8783 to correct erroneous paragraph reference from (6) to (5)

Who is ordered

Timeline

Immediate

  • Notification to Congress and Argentina of GSP suspension intent
  • South Sudan GSP beneficiary designation triggers 20-day countdown

Near term (90d)

  • Argentina GSP suspension effective 60 days after Federal Register publication
  • South Sudan least-developed beneficiary designation effective 60 days after Federal Register publication
  • HTS modifications for Argentina and South Sudan take effect

Long term

  • Haiti apparel duty-free treatment extended through September 30, 2020 (already in effect since May 24, 2010)
  • Potential restructuring of trade relationships with Argentina pending compliance with arbitral award enforcement

Risks & tensions

  • Argentina suspension may escalate bilateral trade tensions; Argentina had previously challenged U.S. trade measures at WTO
  • 60-day Federal Register publication dependency creates slight uncertainty on exact effective date for Argentina suspension
  • South Sudan's nascent state institutions may limit capacity to utilize GSP benefits effectively
  • CAFTA-DR Dominican Republic-Mexico rule expiration reflects broader pattern of regional trade agreement complexities
  • Supersession clause (paragraph 14) is broad but standard; no specific prior proclamations identified as targeted
Proclamation 8788: To Modify Duty-Free Treatment Under the Generalized System of Preferences and For Other Purposes · Executive Orders