U.S. Reauthorizes Trade Preferences for Lebanon

Economy and Trade Minister Alain Hakim met on Wednesday with Ambassador David Hale and talks focused on the continued cooperation to strengthen the Lebanese-American economic relationship, the U.S. embassy said in a statement.

Ambassador Hale highlighted the recent reauthorization of the U.S. Generalized System of Preferences (GSP) program, which strengthens commercial ties and promotes economic growth and stability in Lebanon by granting Lebanese products a competitive advantage in the U.S. market.

“The GSP program allows select nations, including Lebanon, to export their products to America without paying duties and customs,” said Hale.

The long-standing GSP program provides preferential duty-free entry to the United States for eligible products from Lebanon and 121 other beneficiary countries and territories.

The GSP program is designed to promote economic growth by providing preferential duty-free entry to the United States for eligible products from Lebanon. Although the program lapsed in 2013, the recent law reauthorizes the GSP through 2017 and also made GSP benefits retroactive. This will allow U.S. Customs and Border Protection (CBP) to refund duties paid on eligible GSP products during the lapse to Lebanese exporters.

“For example, if a Lebanese exporter and a non-GSP exporter both send a case of olive oil to the United States, the Lebanese exporter will not pay duties, but the other firm will. This gives Lebanese products a competitive advantage in the American market. The result is simple: lower duties increase exports, boosting economic growth,” added the ambassador.

Nearly all Lebanese exports to the United States fall under the GSP program, meaning they can be exported to the United States duty-free.