On 29 June 2015, the US President signed the Trade Preferences Extension Act of 2015 which authorizes the Generalized System of Preferences (GSP) till 31 December 2017 and makes GSP retroactive to 31 July 2013. Ukraine is on the list among countries eligible for GSP.
Duty-free treatment of GSP-eligible imports will become effective 30 days after enactment (i.e., since 29 July 2015).Also in July 2015, the US Customs and Border Protection will issue a notice in the Federal Register providing further guidance on the renewal and how to obtain a refund.
GSP covers the most widely traded goods from a variety of chemicals, minerals, building stone, jewellery, different types of carpets to certain types of agricultural products and fisheries.
Despite non-reciprocal status of GSP, in order to continue being eligible for these types of preferences Ukraine must ensure the effectiveness of IP rights protection and adherence to core labour standards while Ukrainian companies must comply with the requirements of rules of origin.
U.S. trade preference programs such as the Generalized System of Preferences (GSP) provide opportunities to use trade preferences for economic growth and development. GSP is the largest and oldest U.S. trade preference program as it was established by the Trade Act of 1974. GSP promotes economic development by eliminating duties on up to 5,000 types of products when imported from 122 beneficiary countries and territories.