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Generalized System of Preferences (GSP)

The Generalized System of Preferences Program (GSP Program) is set out in title IV of the Trade Act of 1974 (19 U.S.C. 2461 et seq.). It authorizes the President, subject to certain conditions and limitations, to provide duty-free treatment for eligible articles imported from beneficiary developing countries. Before designating an article as eligible for duty-free treatment, the President must obtain the advice of the Commission on the probable economic effect of such designation (19 U.S.C. 2463(a)(1)(A), 2463(e)). Similarly, the President, before waiving the competitive need limitation in the statute, must obtain the Commission's advice on whether any U.S. industry would be adversely affected (19 U.S.C. 2463(d)) by such a waiver.