ASEAN seeks extension of U.S. GSP

ASEAN seeks extension of U.S. GSP

MANILA (AFP): The Association of Southeast Asian Nations (ASEAN) has sought a further 10 years of preferential trading with the United States, saying lost revenues from lower tariffs would be offset by increased U.S. exports to the region, Philippine officials said.

The Generalized System of Preferences (GSP) extended to developing countries such as those in ASEAN -- Brunei, Indonesia, Malaysia, the Philippines, Singapore and Thailand -- expires on Sept. 30 after a 15-month extension.

The six ASEAN ambassadors to Washington urged in a letter sent to U.S. Trade representative Michael Kantor that the GSP be extended for 10 more years instead of five years as proposed by the administration of U.S. President Bill Clinton, Foreign Department officials here said.

Four of the largest beneficiaries of GSP are Jakarta, Kuala Lumpur, Manila and Bangkok.

A GSP renewal will be included in legislation to implement the Uruguay Round agreement under the General Agreement on Tariffs and Trade (GATT) to be drafted by the U.S. congress, department officials said.

"We understand there are budget considerations, but we would like to point out that security provided to beneficiary country producers and U.S. importers by a 10-year renewal is an extremely valuable feature," said the letter, copies of which were made available here Friday.

"As economies of the beneficiaries grow, so too do opportunities for exporters, importers, and investors in the industrialized world," the letter said.

Foreign Department officials said ASEAN fears the prospects of US$12 billion in U.S. revenue losses due to the Uruguay Round agreement could prompt the U.S. Congress to opt for a shorter extension period.