US expects growth of trade turnover, investment in Azerbaijan
The resumption of the “Generalized System of Preferences” (GSP)
program will contribute to expansion of business ties and increase
of the volume of trade turnover of the United States with the
developing countries in general and Azerbaijan in particular, a
partner and vice-chair of the Crowell & Moring’s International
Trade Group John Brew told Trend Sept.9.
John Brew participates in the 10th World Customs Organization (WCO)
PICARD Conference titled “Partnerships in Customs Academic Research
and Development” being held in Baku.
In late July 2015, the US Congress adopted an act to extend the GSP
program, which was suspended in 2012.
This act extends the right to use the GSP program until December
31, 2017. The act came into force on July 29, 2015 and these
benefits will be also applied to goods imported into the United
States since the period of the loss of power of the previous act
[July 31, 2013].
The exporters will be able to get back customs duties till December
2015 paid for goods delivered to the US from July 31, 2013 until
July 29, 2015.
"Despite the share of imported goods as part of the GSP program is
only a few percent of the US total import volume, I believe that
this program of preferences helps expand trade relations with
developing countries, including Azerbaijan," Brew said.
Brew said that the amount of investments made by the US in
Azerbaijan is also being increased thanks to the GSP.
"The number of companies investing in the Azerbaijani economy
increasing every year,” he said. “A part of these funds is directed
to purchase the goods as part of the GSP preferential system."
It is worth noting the overall US investments in Azerbaijan today
total $10 billion.
Speaking about the goods imported to the US as part of the
preference program, Brew said that most of all, various metals and
minerals are delivered to the country.
“Unfortunately, I don’t know exactly what is imported under the GSP
from Azerbaijan, but mainly metals and minerals, chemical products,
agricultural products and a variety of equipment come in the US,”
he said.
Under the GSP, it is allowed to deliver to the US up to 5,000
commodity items from developing countries.
Brew noted that in 2012, before the suspension of the program,
preferences covered imports worth $20 billion from 123
countries.
In particular, many industrial goods, chemicals, construction
materials, jewelry, carpets, a number of agricultural products are
eligible for duty-free import or preferential tariffs.
The program should be updated every few years, said Brew, adding
that its suspension in 2012 negatively affected the turnover of the
US with the participating countries of GSP program and reduced
investment potential in these countries.
Brew said he believes that the program’s resumption will have a
positive impact on the trade with developing countries.
The trade turnover between Azerbaijan and the US stood at $877.07
million in Jan.-July 2015, or 7.9 percent more than in the same
period of 2014, according to the State Customs Committee of
Azerbaijan.
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