This measure will benefit over 500 Argentine goods, mostly produced by regional economies. Argentina had been suspended from the GSP in 2012.
Argentina has been reinstated as a beneficiary of the Generalized System of Preferences (GSP) for exports to the United States after 6 years. Through this system, a group of products from Argentine regional economies will be able to access the American market at zero tariff.
United States Trade Representative Robert Lighthizer announced that President Trump signed the decision today, after two years of negotiation. The U.S. Congress will have to reauthorize the GSP, as it does periodically, with retroactive effect as of 1 January 2018.
Argentine Foreign Minister Jorge Faurie stated that this reinstatement is "a clear recognition for Argentina's efforts to strengthen its economy and its insertion into international trade" and underscored that, as a result of this measure, we expect to "recover a trade link that will create more and better opportunities for Argentine exporters and regional economies."
"In 2011 -the last year in which Argentina was a GSP beneficiary- exports of eligible products totalled USD 464 million (10% of total exports to the US)," highlighted Horacio Reyser, the Argentine Secretary for International Economic Relations.
"This is a major step in the efforts to achieve greater international insertion so as to advance towards the zero poverty goal. More exports mean more jobs, more development, and more opportunities for the Argentine people," Argentine Minister of Production Francisco Cabrera stated.
"Bilateral trade exchange is currently very low and there is work to do in that regard. Forging closer ties and showing what Argentina has to offer to attract higher U.S. investment is of great importance," he added.
For his part, the Ministry of Agro-Industry, Luis Miguel Etchevehere, underscored that "this is a goodwill gesture of President Trump's administration towards Argentina, not only because of its impact on production and exports, especially on regional economies and value-added products, but also because of what it means for bilateral relations with the United States."
The Foreign Ministry, the Ministry of Production and the Ministry of Agro-Industry have worked jointly and in coordination, encouraging active participation of the provinces and the private sector, which will benefit from an increase in exports to the United States.
Under the GSP, tariff preferences are granted by developed countries to certain products imported from developing countries, which receive preferential treatment and significant tariff reductions.
Background
As of 2012, the United States granted zero-tariff treatment to 538 Argentine agricultural products under he GSP. Argentina's main exports under the system were wine, non-cocoa sugar confectionery, preserved beef, olive oil, cheese, peanuts and strawberries.
Argentina was suspended as a GSP beneficiary in 28 May 2012. The U.S. government claimed that Argentina had not acted in good faith in the disputes settled at ICSID in favour of Azurix and Blue Ridge Investment over the termination of contracts amid the 2001 crisis in Argentina. Argentina did subsequently comply with the arbitral awards.
Press release No. 594/17
Press Office: 4819-7375 / 8296 / 7388
@CancilleriaARG