1
Presentation
United States GSP
Benefits & Potential Sectors
Muhammad Ashraf
Joint Secretary (Exim), Ministry of Commerce
2
Sequence of Presentation
Preferential Market Access
Advantages
Knowing the Potential GSP
Sectors
3
Preferential
Market Access
Advantages
4
Determinants of Buying Decisions
Price
Buying
Decision
Delivery
Quality
Price Equation
Is it importer’s
cost???
Importer’s Price = Product Price + Tariff
GSP Benefits
More Sales
• MFN Source = $10 + 20% ($2) =
• GSP Source = $10 + 0
=
$12
$10
Higher Profits
• MFN Source =
• GSP Source =
$10 + $2
$11.5 + 0
= $12
= $11.5
Tariff Advantage = Competitive Advantage
HTS chapter & Product description
GSP tariff
advantage
Total GSP
Value
17 – Certain sugars & sugar confectionery
Up to 5.6%
$30.8 m
39 – Plastics in primary forms & semifinished & finished products
Up to 6.5%
$26.8 m
71 – Precious and semiprecious jewelry
Up to 11%
$16.0 m
82 – Tools & cutlery made of base metals
Up to 19%
$15.1 m
63 – certain textile articles, used textiles,
& rags
Up to 5.8%
$14.3 m
09 – Spices
Up to 6.4%
$11.0 m
8
Peculiarities of
Potential GSP
Sectors
9
1 of 3
GSP Potential Sectors - Peculiarities
• Brands
Spices • Ethnic segment
Dates • Processors
Food
Products
Sugar
• Millers
• Value added
• SMEs
Sauces • Processors
2 of 3
GSP Potential Sectors - Peculiarities
Gloves
Regional
Products
(Sialkot)
• Est. market linkages
• Aggressive
entrepreneurs
Cutlery
Manicure/
Pedicure
• Niche market
• SMEs
• Established supply
base
• Mainstream market
3 of 3
GSP Potential Sectors - Peculiarities
P.E.T.
Mass
Produced
Products
• Few players
• Large volumes
Jewelry
Textile
• Huge Potential
• Supply-demand
mismatch
• Large Sector
• Niche Product
Thank
You