Opposition Leader Basdeo Panday has described United States President George Bush's decision to put an end the duty-free access for local exports, under the Generalised System of Preferences (GSP) in two year's time, as "a very serious situation" that threatens small and struggling exporters in particular.

Panday said Wednesday that the GSP withdrawal will cause local manufacturers to encounter difficulties in selling their products in the US.

"Duty will have to be added to the cost of those products entering the US and this will make them less competitive with similar products coming from other countries that still benefit from GSP," Panday said in a release.

Also responding to this new development, Congress of the People (COP) spokesman for foreign affairs, Nirad Tewarie, said "notwithstanding the fact that most of this country's exports to the United States are energy related, it must be noted that the manufacturing sector is this country's single largest employer after the Government, employing more than 60,000 people".

"Therefore, the closure of even a single sub-sector will affect hundreds, possibly thousands of Trinbagonians," Tewarie said.

Tewarie is calling on the Government "to act swiftly to protect manufacturers and workers who will be affected by the decision."

Panday took issue with Minister in the Finance Ministry Mariano Browne's comments that Bush's decision will affect some people but does not pose a threat to local business.

"The termination of special treatment under the Generalised System of Preferences (GSP) will have serious and far-reaching consequences for the domestic economy, including a further escalation in the cost of goods and services, higher cost of doing business and the possible closure of small and struggling export operators," Panday said.