USA has granted reauthorized Generalized System of Preferences (GSP) to Sri Lanka with effect from November 5, 2011 to July 31, 2013.

The US President Barack Obama on Friday, October 21, has signed the reauthorization of the into law following its passage in the Congress.

The new GSP reauthorization will become effective on Saturday, November 5, 2011 and will remain in effect through July 31, 2013. The bill also makes GSP benefits retroactive to January 1, 2011.

Accordingly, Sri Lankan exporters will receive tariff benefits retroactively from beginning of this year.

A press release issued by the U.S. Embassy in Colombo said as the GSP program was renewed retroactively, Sri Lankan exporters will be reimbursed for tariffs paid during the gap period.

The GSP which provides duty-free treatment for goods produced in developing countries was temporarily suspended at the end of 2010.

The GSP was instituted on January 1, 1976, by the Trade Act of 1974. The United States' GSP is a program designed to promote economic growth in the developing world by providing preferential duty-free entry for up to 4,800 products from 129 designated beneficiary countries and territories, including Sri Lanka. Sri Lanka benefited from GSP treatment on approximately $147 million of goods in 2010.