Proclamation 6942—To Amend the Generalized System of Preferences

1. Sections 501(1) and (4) of the Trade Act of 1974, as amended ("Trade Act") (19 U.S.C. 2461(1) and (4)), provide that, in affording duty-free treatment under the Generalized System of Preferences (GSP), the President shall have due regard for, among other factors, the effect such action will have on furthering the economic development of a beneficiary developing country and the extent of the beneficiary developing country's competitiveness with respect to eligible articles. Section 502(c)(2) of the Trade Act (19 U.S.C. 2462(c)(2)) provides that, in determining whether to designate any country as a beneficiary developing country for purposes of the GSP, the President shall take into account various factors, including the country's level of economic development, the country's per capita gross national product, the living standards of its inhabitants, and any other economic factors he deems appropriate. Section 502(d) of the Trade Act (19 U.S.C. 2462(d)) authorizes the President to withdraw, suspend, or limit the application of duty-free treatment under the GSP with respect to any country after considering the factors set forth in sections 501 and 502(c) of the Trade Act. Section 502(f)(2) of the Trade Act (19 U.S.C. 2462(f)(2)) requires the President to notify the Congress and the affected country, at least 60 days before termination, of the President's intention to terminate the affected country's designation as a beneficiary developing country for purposes of the GSP.

2. Section 502(e) of the Trade Act (19 U.S.C. 2462(e)) provides that the President shall terminate the designation of a country as a beneficiary developing country if the President determines that such country has become a "high income" country as defined by the official statistics of the International Bank for Reconstruction and Development. Termination is effective on January 1 of the second year following the year in which such determination is made.

3. Section 502(c)(7) of the Trade Act (19 U.S.C. 2462(c)(7)) provides that, in determining whether to designate any country a beneficiary developing country under this section, the President shall take into account whether the country has taken or is taking steps to afford internationally recognized worker rights to workers in the country.

4. Section 502(a)(1) of the Trade Act (19 U.S.C. 2462(a)(1)) authorizes the President to designate countries as beneficiary developing countries for purposes of the GSP. Section 503(c)(2)(F) of the Trade Act (19 U.S.C. 2463(c)(2)(F)) authorizes the President to disregard the limitations provided in section 503(c)(2)(A)(i)(II) of the Trade Act (19 U.S.C. 2463(c)(2)(A)(i)(II)) with respect to any eligible article if the aggregate appraised value of the imports of such article into the United States during the preceding calendar year is de minimis.

5. Section 502(a)(2) of the Trade Act (19 U.S.C. 2462(a)(2)) authorizes the President to designate any beneficiary developing country as a least-developed beneficiary developing country for purposes of the GSP based on the considerations in sections 501 and 502(c) of the Trade Act.

6. Pursuant to section 502(d) of the Trade Act, and having considered the factors set forth in sections 501 and 502(c)(2), I have determined that Malaysia is sufficiently advanced in economic development and improved in trade competitiveness that continued preferential treatment under the GSP is not warranted, and that it is appropriate to terminate the designation of Malaysia as a beneficiary developing country for purposes of the GSP effective January 1, 1997. In order to take into account the termination of benefits under the GSP for articles imported from Malaysia, I have determined that it is appropriate to: (i) terminate the designation of Malaysia for GSP purposes as a member of the Association of South East Asian Nations ("ASEAN") and to modify general note 4(a) of the Harmonized Tariff Schedule of the United States ("HTS") to reflect such termination, (ii) delete from general note 4(d) of the HTS and from pertinent HTS subheadings all references to particular products of Malaysia which are currently excluded from preferential tariff treatment under the GSP, and (iii) to terminate any waivers of the competitive need limits granted to Malaysia pursuant to section 503(d) of the Trade Act (19 U.S.C. 2463(d)).

7. Pursuant to section 502(e) of the Trade Act, I have determined that Cyprus, Aruba, Macau, the Netherlands Antilles, Greenland, and the Cayman Islands meet the definition of a "high income" country as defined by the official statistics of the International Bank for Reconstruction and Development. As a result and pursuant to section 502(e) of the Trade Act, I am terminating the preferential treatment under the GSP for articles that are currently eligible for such treatment and that are imported from Cyprus, Aruba, Macau, the Netherlands Antilles, Greenland, and the Cayman Islands effective January 1, 1998.

8. Pursuant to section 502(d) of the Trade Act, and having considered the factors set forth in sections 501 and 502(c)(7), I have determined that it is appropriate to suspend some of Pakistan's GSP benefits because of insufficient progress on affording workers in that country internationally recognized worker rights. In order to reflect the suspension of benefits under the GSP for certain articles imported from Pakistan, I have determined that it is appropriate to modify general note 4(d) of the HTS and pertinent HTS subheadings so that Pakistan will no longer receive preferential tariff treatment under the GSP with respect to certain eligible articles effective July 1, 1996.

9. Pursuant to section 502(a)(1) of the Trade Act, I am acting to correct the name of Guinea-Bissau and the Republic of Yemen in the HTS, beneficiary developing countries previously proclaimed. In addition, I have determined that it is appropriate to disregard section 503(c)(2)(A)(i)(II) of the Trade Act with respect to certain eligible articles from certain beneficiary developing countries based on imports for calendar year 1994 and to restore preferential treatment under the GSP to imports of such articles from such countries.

10. Pursuant to sections 502(a)(2) and 502(d) of the Trade Act, and having considered the factors set forth in sections 501 and 502(c), I have determined that Botswana and Western Samoa should be deleted from the list of least-developed beneficiary developing countries and Angola, Ethiopia, Madagascar, Zaire, and Zambia should be added.

11. Section 604 of the Trade Act, as amended (19 U.S.C. 2483), authorizes the President to embody in the HTS the substance of the relevant provisions of that Act, and of other Acts affecting import treatment, and actions thereunder.

Now, Therefore, I, William J. Clinton, President of the United States of America, acting under the authority vested in me by the Constitution and the laws of the United States, including but not limited to section 301 of Title 3, United States Code, and Title V and section 604 of the Trade Act, do proclaim that:

(1) In order to terminate the designation of Malaysia as a beneficiary developing country under the GSP and to modify the list of beneficiary developing countries designated as least-developed beneficiary developing countries for purposes of the GSP, the HTS is modified as provided in Annex I to this proclamation.

(2) In order to terminate the designation of Cyprus, Aruba, Macau, the Netherlands Antilles, Greenland, and the Cayman Islands as beneficiary developing countries under the GSP, the HTS is modified as provided in Annex II to this proclamation.

(3) In order to reflect the suspension of benefits under the GSP for certain articles imported from Pakistan, the HTS is modified as provided in Annex III to this proclamation.

(4) In order to correct the name of Guinea-Bissau and Republic of Yemen and to restore preferential treatment to certain eligible articles from certain beneficiary developing countries as a result of granting of de minimis waivers to such articles, the HTS is modified as provided in Annex IV to this proclamation.

(5) I delegate to the United States Trade Representative the powers granted to me in section 502(f)(2) of the Trade Act to notify a country of my intention to terminate that country's status as a beneficiary developing country for the purposes of the GSP.

(6) Any provisions of previous proclamations and Executive orders inconsistent with the provisions of this proclamation are hereby superseded to the extent of such inconsistency.

(7) The modifications to the HTS made in paragraphs (1) through (4) of this proclamation shall be effective with respect to articles both: (i) imported on or after January 1, 1976, and (ii) entered, or withdrawn from warehouse for consumption, on or after the date specified in the respective Annex.

In Witness Whereof, I have hereunto set my hand this seventeenth day of October, in the year of our Lord nineteen hundred and ninety-six, and of the Independence of the United States of America the two hundred and twenty-first.

WILLIAM J. CLINTON