As of January 1, 2011, Croatia will no longer be on the list of beneficiaries of the Generalized System of Preferences (GSP) provided by the United States (USA) to developing countries, reported the Croatian Chamber of Economy (HGK).
The reason for the abolition of preferences for goods originating from Croatia is based on data from the International Monetary Fund (IMF) indicating that Croatia has moved from the low and middle-income category to a higher one.
– The abolition of preferences applies to goods that have so far enjoyed preferential status, most commonly food products (cheese spreads, processed fruits and vegetables – jams) and jewelry made from precious materials. This affects approximately 22 percent of trade from 2009. Given that this was known earlier, the production of, for example, jewelry made from precious materials has been transferred to other countries that still enjoy GSP. With the loss of GSP status on goods that enjoyed it, standard/customary tariffs are introduced, raising their price in the US market and thereby reducing competitiveness, said Miroslav Karamarković, head of the Department for Overseas Countries – Sector for International Relations of HGK. (Kristina Kardum)
The USA was guided by the criteria of the value of Croatian exports to the US market, the development of the economy, and the share in total world exports, HGK stated. Since these are benefits that certain developed countries, including the USA, provide to developing countries, the preferences from this system are granted to beneficiary countries and are not negotiable, as the preferential treatment is not based on reciprocity.
Until now, when exporting goods originating from Croatia and using GSP preferences, the goods were accompanied by a certificate of origin issued by HGK as the authorized body. As of January 1, 2011, for exporting goods to the USA, it is necessary to obtain a certificate of Croatian non-preferential origin, which is also issued by HGK, explained the Croatian Chamber of Economy.
According to data from the State Bureau of Statistics, Croatia exported goods worth 183.5 million euros to the USA in the first ten months of this year, which is 39.9 percent more than in the same period last year. At the same time, goods worth 275.6 million euros were imported from the USA, which is 18.7 percent less. (H)
