SHAFAQNA (Shia International News Association)
The United States will terminate Russia’s designation as a beneficiary developing country, a status aimed at boosting a country’s economy through reduced tariffs under the Generalized System of Preferences (GSP), a presidential proclamation from US President Barack Obama said on the White House official website.
“I have determined that Russia is sufficiently advanced in economic development and improved in trade competitiveness that it is appropriate to terminate the designation of Russia as a beneficiary developing country effective October 3, 2014,” the statement on the White House’s official website said.
According to the document, the decision came into force on Friday.
President Obama notified the Congress and Russia of the change on May 7, 2014 prior to the withdrawal of the trade preferences granted to Russia in accordance to the GSP.
The Russian Ministry of Economic Development told RIA Novosti that the modification is not expected to cause significant changes in the dynamic and structure of Russian exports, but may impact American companies, which, thanks to these prior benefits, could save on the purchase of commodities rare or absent from the US market.
The US Generalized System of Preferences is a program designed to aid economic growth in developing nations by providing duty-free entry for up to 5,000 products when imported from one of the beneficiary countries or territories on the list. A number of African, Latin American, Middle Eastern, Balkan and former Soviet Union countries are currently receiving GSP benefits. Specific countries include India, Indonesia, and South Africa. The list contains over 100 countries or territories.