Graduate some or all of the products exported to the US

[cannonkuo]

Graduate some or all of the products exported to the US now receiving benefit of GSP. While the nominal cost is difficult to calculate, Argentina has indicated concern over the prospective graduation of products currently on the list and has expressed interest in having the present 1985 expiry date of GSP extended.
(Source: Foreign Relations of the United States, 1981–1988, Volume XIII, Conflict in the South Atlantic, 1981–1984 - Office of the Historian)

What do Graduate and graduation mean respectively here in the two sentences?

Thank you very much in advance.

 

[SoothingDave]

Are you being punished by being made to read old government memos?

GSP is a program where the US gives preferential treatment to certain products from countries in the developing world. Mainly exemption from import duties.

The memo suggests that certain products could be "graduated" out of the program. Meaning they would be deemed to be successful enough to no longer need the special treatment.

In other words, they are using the lever of increased taxation to try to coerce the wanted behavior in the developing country.

 

[cannonkuo]

So once certain products "graduate" from GSP, they will be taxed by the US; the tax rate of those products, decided by the US, can be used as a lever to coerce the wanted behavior in the developing country. Is my interpretation correct?

 

[SoothingDave]

Almost. It is the designation of GSP or not that is the main lever. Are these products taxed or not?

 

[Skrej]

The removal of products from the GSP list is leverage in and of itself. That means any graduated goods will now be taxed instead of being duty-free.

While the act of raising tariffs beyond the normal rate can be another tool, there's nothing in the text that suggests the graduated goods will be assessed additionally beyond whatever is the normal rate.

Although I suppose you could consider going from zero percent to whatever the normal percent is as an increase.