Memorandum on Actions Concerning the Generalized System of Preferences

Memorandum for the United States Trade Representative

Pursuant to sections 502(b)(4), 502(b)(7), 502(c)(5), and 504 of the Trade Act of 1974, as amended (the 1974 Act) (19 U.S.C. 2462(b)(4), 2462(b)(7), 2462(c)(5), and 2464), I am authorized to make determinations concerning the alleged expropriation without compensation by a beneficiary developing country, to make findings concerning whether steps have been taken or are being taken by certain beneficiary developing countries to afford internationally recognized worker rights to workers in such countries, to take into account in determining the Generalized System of Preferences (GSP) eligibility of a beneficiary developing country the extent to which certain beneficiary developing countries are providing adequate and effective means under its laws for foreign nationals to secure, to exercise, and to enforce exclusive rights in intellectual property, including patents, trademarks, and copyrights, and to modify the application of duty-free treatment under the GSP currently being afforded to such beneficiary developing countries as a result of my determinations.

Specifically, after considering a private sector request for a review concerning the alleged expropriation by Peru of property owned by a United States person allegedly without prompt, adequate, and effective compensation, without entering into good faith negotiations to provide such compensation or otherwise taking steps to discharge its obligations, and without submitting the expropriation claim to arbitration, I have decided to continue the review of the alleged expropriation by Peru.

Second, after considering various private sector requests for a review of whether or not certain beneficiary developing countries have taken or are taking steps to afford internationally recognized worker rights (as defined in section 502(a)(4) of the 1974 Act (19 U.S.C. 2462(a)(4)) to workers in such countries, and in accordance with section 502(b)(7) of the 1974 Act (19 U.S.C. 2462(b)(7)), I have determined that Panama has taken or is taking steps to afford internationally recognized worker rights, and I have determined that Mauritania has not taken and is not taking steps to afford such internationally recognized rights. Therefore, I am notifying the Congress of my intention to suspend the GSP eligibility of Mauritania. Finally, I have determined to continue to review the status of such worker rights in Bahrain, El Salvador, Fiji, Guatemala, Indonesia, Malawi, Oman, and Thailand.

Third, after considering various private sector requests for a review of whether or not certain beneficiary developing countries are providing adequate and effective means under their laws for foreign nationals to secure, to exercise, and to enforce exclusive rights in intellectual property, including patents, trademarks, and copyrights, I have determined to continue the review of the Dominican Republic, Guatemala, and Honduras.

Fourth, pursuant to section 504(f) of the 1974 Act (19 U.S.C. 2464(f)), I am hereby acting to modify the application of duty-free treatment under the GSP currently being afforded to Israel.

Specifically, I have determined under the provisions of section 504(f) that the per capita gross national product for Israel, calculated on the basis of the best available information, including 1992 World Bank statistics, exceeds the applicable limit provided in section 504(f)(2). Accordingly, pursuant to section 504(f)(1)(A), beginning on July 1, 1993, and continuing through June 30, 1995, the limitations of preferential treatment provided under section 504(c)(1)(B) of the 1974 Act (19 U.S.C. 2464(c)(1)(B)) shall be applied substituting "25 percent" for "50 percent." Furthermore, pursuant to section 504(f)(1)(B), effective July 1, 1995, Israel shall no longer be treated as a beneficiary developing country for purposes ofthe GSP.

Pursuant to section 504 of the 1974 Act, after considering various requests for a waiver of the application of section 504(c) of the 1974 Act (19 U.S.C. 2464(c)) with respect to certain eligible articles, I have determined that it is appropriate to modify the application of duty-free treatment under the GSP currently being afforded to certain articles and to certain beneficiary developing countries. Further, in order to convert a prior Presidential decision taken in terms of the Tariff Schedule of the United States (TSUS) into the nomenclature of the Harmonized Tariff Schedule of the United States (HTS), I have also determined that it is appropriate to convert the waiver of section 504(c) of the 1974 Act with respect to lawn tennis balls provided for in TSUS 734.85 from Indonesia into the HTS nomenclature, specifically HTS subheading 9506.91.00.

Specifically, pursuant to section 504(c)(3) of the 1974 Act (19 U.S.C. 2464(c)(3)), I have determined that it is appropriate to waive the application of section 504(c) of the 1974 Act with respect to certain eligible articles from certain beneficiary developing countries. I have received the advice of the United States International Trade Commission on whether any industries in the United States are likely to be adversely affected by such waivers, and I have determined, based on that advice and on the considerations described in sections 501 and 502(c) of the 1974 Act (19 U.S.C. 2461 and 2462(c)), that such waivers are in the national economic interest of the United States. The waivers of the application of section 504(c) of the 1974 Act apply to the eligible articles in the HTS subheadings and the beneficiary developing countries set opposite such HTS subheadings enumerated below.

HTS Subheadings and Countries Granted Waivers of Section 504(c) of the 1974 Act

HTS

Subheading

Country

7202.50.00 Zimbabwe

8521.10.60 Malaysia

8527.11.60 Malaysia

These determinations shall be published in the Federal Register.

WILLIAM J. CLINTON

THE WHITE HOUSE,

Washington, June 25, 1993.