14 11 2016

US To Consider GSP Trade Benefits For Argentina

On November 7, United States Trade Representative Michael Froman announced that his office is to initiate a public review process to determine whether Argentina is eligible for the US Generalized System of Preferences (GSP).

Under the US GSP program, beneficiary developing countries export approximately 3,500 different products duty-free to the United States. In 2015, exports that entered the United States duty-free under the GSP program from all countries totaled nearly USD17.7bn.

Froman was speaking after the inaugural meeting under the United States-Argentina Trade and Investment Framework Agreement, during which the Argentinean Government requested that the United States consider re-designating Argentina as a beneficiary developing country for the GSP program.

Froman acknowledged the Argentinean Government's settlement of outstanding arbitral awards with two US companies in late 2013. In 2012, the United States had cited Argentina's failure to enforce arbitral awards in its decision to suspend the country from the GSP.

Two-way goods and services trade between the United States and Argentina totaled USD23.4bn in 2015. The US goods and services trade surplus with Argentina was approximately USD11.4bn. Argentina's outward foreign direct investment (FDI) in the United States was nearly USD3.8bn that year, while US FDI in Argentina was USD13.3bn.