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.