Letter to Congressional Leaders on the Designation of Bahrain as a Beneficiary Developing Country

Dear Mr. Speaker: (Dear Mr. President:)

I am writing to inform you of my intent to add Bahrain to the list of beneficiary developing countries under the Generalized System of Preferences (GSP). The GSP program is authorized by the Trade Act of 1974, as amended ("the 1974 Act").

Bahrain was a GSP beneficiary from the inception of the program in 1976 to July 1, 1988. Proclamation No. 5805 of April 29, 1988, terminated Bahrain as a designated beneficiary developing country under the GSP pursuant to section 504(f) of the 1974 Act. Section 504(f) provides that if the President determines that the per capita gross national product (calculated on the basis of the best available information, including that of the World Bank) for any beneficiary country for a calendar year subsequent to 1984 exceeds the applicable limit for the determination year in question, such country shall not be treated as a beneficiary developing country under this Act after the close of a 2-year period. Based on the best available information, it was determined that Bahrain's per capita gross national product for the calendar year 1985 had exceeded the applicable limit provided in section 504(f).

The World Bank has now revised its per capita GNP statistics for Bahrain, indicating that Bahrain did not exceed the GSP statutory limit for 1985 or succeeding years. On the basis of these revised statistics, I have determined that the previous determination in Proclamation No. 5805 that the per capita gross national product of Bahrain for calendar year 1985 exceeded the applicable limit under section 504(f) of the 1974 Act was erroneous, and the restrictions of section 504(f)(1) of the 1974 Act are therefore inapplicable to Bahrain. I have further determined, pursuant to sections 502(a) and (c) of the 1974 Act and having due regard for the eligibility criteria set forth therein, that it is appropriate to designate Bahrain as a beneficiary developing country for purposes of the GSP.

This notice is submitted in accordance with section 502(a)(1) of the Trade Act of 1974, as amended.

Sincerely,

George Bush