Proclamation 9902-To Modify the List of Beneficiary Developing Countries Under the Trade Act of 1974
Issued 2019-05-31 by Donald J. Trump
Plain-English Overview
AI-generated summary explaining what this action does, who it affects, and why it matters
President Trump removed India from a trade program called the Generalized System of Preferences (GSP), which allows certain developing countries to export goods to the United States without paying import duties. India had been part of this program since 1975. The proclamation terminated India's participation effective June 5, 2019, based on a determination that India had not assured the United States it would provide equitable and reasonable access to its markets.
This action affects American businesses that import goods from India, as those products would now face normal import duties rather than entering duty-free. It also impacts Indian exporters who previously benefited from preferential access to the U.S. market. The Trade Act of 1974 gives the President authority to remove countries from the GSP program after considering various factors and providing 60 days' notice to Congress and the affected country, which was done on March 4, 2019.
The proclamation also addressed exemptions from certain safeguard measures (special tariffs imposed to protect domestic industries) that had been applied to imports of solar cells and residential washers. These exemptions for developing countries, including India, were based on their share of total imports remaining below specified thresholds.
AI-generated summary for educational purposes
Constitutional Analysis
How this action fits (or doesn't) within Article II authority and existing law
This proclamation issues "Proclamation 9902-To Modify the List of Beneficiary Developing Countries Under the Trade Act of 1974". The stated purpose: "increased imports of articles that are a substantial cause of serious injury to a domestic industry producing like or directly competitive products." Presidents have issued proclamations since George Washington, and they carry the force of law when grounded in specific statutory authority delegated by Congress. Proclamations can be ceremonial (expressing national sentiment) or substantive (exercising delegated trade, immigration, or emergency powers).
The legal weight of this proclamation depends on the specific statutory authority it invokes. Without statutory backing, a proclamation is merely an expression of executive policy with no binding legal effect on citizens. With statutory backing, it can create enforceable rules — but those rules must stay within the scope of what Congress authorized.
Official Summary
Administration of Donald J. Trump, 2019 Proclamation 9902—To Modify the List of Beneficiary Developing Countries Under the Trade Act of 1974 May 31, 2019 By the President of the United States of America A Proclamation 1. In Executive Order 11888 of November 24, 1975, the President designated India as a beneficiary developing country for purposes of the Generalized System of Preferences (GSP) (19 U.S.C. 2461 et seq .). 2. Pursuant to section 502(d)(1) of the Trade Act of 1974, as amended (the "1974 Act") (19 U.S.C. 2462(d)(1)), the President may withdraw, suspend, or limit the application of the duty-free treatment accorded under the GSP with respect to any beneficiary developing country. In taking any action under section 502(d)(1) of the 1974 Act, the President shall consider the factors set forth in sections 501 and 502(c) of the 1974 Act (19 U.S.C. 2461 and 2462(c)). 3. Section 502(c)(4) of the 1974 Act (19 U.S.C. 2462(c)(4)) provides that, in determining whether to designate any country as a beneficiary developing country, the President shall take into account, among other factors, the extent to which such country has assured the United States that it will provide equitable and reasonable access to the markets and basic c