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Significance

The preferential US trade programme faces renewal or lapse by December 31. South-east Asia’s economies are structured to take advantage of the GSP and many of the products exported to the United States under GSP (such as light manufactures and seafood) are important for South-east Asia’s supply chains.

Impacts

Vietnam may make another application for inclusion in the US GSP programme.

The more authoritarian South-east Asian countries could find it easier to gain US GSP preferences under Trump.

The Trump administration could use the GSP as a bargaining chip in trade negotiations or renegotiations.

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