$3 Billion in Imports Off U.S. Duty-Free List

The Reagan Administration said today that it is ending duty-free status for about $3 billion in imports from Taiwan, Korea and other developing countries and is eliminating entirely the eligibility of Nicaragua, Paraguay and Romania.

Poor records on worker rights were cited as the reason for penalizing the three countries whose eligibility for duty-free status was canceled.

U.S. Trade Representative Clayton Yeutter said President Reagan’s decision to begin imposing 5% to 7% tariffs on about 290 products from eight countries represents a “redirection” toward shifting duty-free status to countries with “greater need.”

$2 Billion in Exports

Reagan’s decision, announced by Yeutter today, effectively would impose new tariffs on more than $2 billion of exports to the United States from Taiwan, Korea, Brazil, Mexico, Hong Kong and Singapore.

However, many of those newly industrialized countries, and less advanced nations such as the Philippines, Colombia and Malaysia, will acquire enhanced trade preferences or duty-free status on about $950 million in exports to the United States.

Once the changes take place July 1, Yeutter said, the level of benefits enjoyed by the advanced developing countries will drop a net 23%, or $2 billion below the $13.3 billion in imports that received duty-free status under the program in 1985.

Developing Nations

Under the Generalized System of Preferences created by Congress a decade ago and renewed in 1984, the United States grants duty-free status to about 3,000 products from 140 developing nations.

Over the opposition of the Reagan Administration, Congress three years ago added a requirement that the President withdraw duty-free status for any country “not taking steps to afford internationally recognized worker rights” to its citizens.