The Generalized System ol Preferences (GSP) giving trade benefits to designated develop ing countries has been reau thonsed by the US Congress with some changes and for a short term, reports UNB quot ing USIS in Dhaka

A provision reauthorising GSP retroactively to July 31. 1995 and through May 31. 1997. was buried deep in the bill increasing the US minimum wage that Congress passed August 2 just before its summer recess President Clintdn is expected to sign the bill

A US trade official said the Clinton administration was sat tsfied with the extension. The administration had once pro posed long term reauthorisa tion of GSP with significant reforms but that idea has gone nowhere for two years

GSP provides US zero-tariff benefits on more than 4.400 selected products or product j categories from more than 140

eligible developing countries The value of GSP duty free im pons in 1994 was about 8 19 000 million

Congress has changed the standard for graduating coun tries from GSP eligibility Un der the expired law countries were ineligible if their per capita gross national product (GNP) exceeded $11,800 in 1994 Under the bill just passed which uses the World Bank definition of a high In come country, the maumum 1994 GNP level would have been S8.600

The trade official -.nd he has not yet calculated which countries would immediately become ineligible for GSf* treatment tiecause of the deft nition change

The bill also changes one of the restncUons on GSP called competitive need limits fm ports of a particular good from a particular country do longer qualify for GSP treatment tn a given rear if they exceed a cer

tain annually adjusted value level In 1995 that level was $122 million the bill passed by Congress reduces the level in 1996 to $75 million and raises the level $5 million in 1997

The bill would still prohibit GSP treatment for a number of goods including most textile and apparel products, watches, footwear, handbags, luggage, flat goods, work gloves as well as some electronic steel arid glass imports that pose com petition problems for US in dustry

One change in the law would benefit the least deveI oped countries Except for the excluded goods mentioned above. any good from those < ountries could be designated by the president as eligible for GSP treatment if the US International Trade Commission (USfTC) determines that the imports would not injure US industry