GSP program resumption to contribute to Azerbaijan-US business ties
September 13, 2015 Leave a comment
The resumption of the “Generalized System of Preferences” program will contribute to expansion of business ties and increase trade turnover volume of the U.S. with the developing countries, in particular Azerbaijan, said John Brew, a partner and vice-chair of the Crowell & Moring’s International Trade Group, to Trend on September 9.
Brew participated at the 10th World Customs Organization Conference titled “Partnerships in Customs Academic Research and Development” held in Baku on September 8-10.
In late July 2015, the U.S. Congress adopted an act to extend the GSP program, which was suspended in 2012, until December 31, 2017. The act came into force on July 29, 2015.
The GSP, the largest and oldest U.S. trade preference program, provides opportunities for many of the world’s poorest countries to use trade to grow their economies and climb out of poverty. The program promotes economic development by eliminating duties on up to 5,000 types of products when imported from one of 122 designated beneficiary countries and territories.
“Despite the share of imported goods as part of the GSP program is only a few percent of the U.S. total import volume, I believe that this program of preferences helps expand trade relations with developing countries, including Azerbaijan,” Brew said.
Brew also noted that the amount of investments made by the U.S. in Azerbaijan is also being increased thanks to the GSP.
“The number of companies investing in the Azerbaijani economy is increasing every year,” he said. “A part of these funds is directed to purchase the goods as part of the GSP preferential system.”
Overall U.S. investments in the Azerbaijani economy today amount to $10 billion.
Speaking about the goods imported to the U.S. as part of the preference program, Brew said that most of all, various metals and minerals are delivered to the country.
The trade turnover between Azerbaijan and the U.S. amounted to over $1.309 billion in 2014, according to the Azerbaijan State Customs Committee.
The United States-Azerbaijan Chamber of Commerce, established in 1995, is a vital resource for American companies seeking to start long-term business ties with Azerbaijan. The USACC is active in promoting such sectors of Azerbaijani economy as agriculture, construction, information technology, alternative energy, and tourism.