GSP Update Bill Introduced in House; Extends Benefits to Travel Goods
Two House Republicans introduced a Generalized System of Preferences update act May 22, which broadens the trade preference program to include imports of travel goods. The GSP Update for Production Diversification and Trade Enhancement Act was introduced by Reps. Ander Crenshaw, R-Fla., and Adrian Smith, R-Neb. The bill would remove current prohibitions that prevent most travel goods from being eligible for duty benefits under GSP, according to a statement from the American Apparel and Footwear Association supporting the bill (here). The bill still excludes from GSP eligibility certain types of travel goods still made in the U.S., and requires a complete government review and public comment before the U.S. Trade Representative approves any GSP benefits for travel goods, AAFA said. The bill also prohibits China and Vietnam from participating in GSP.
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The bill is “an opportunity to enhance a successful global development program for our partners and allies and in so doing strengthen our national security in key world regions,” said Crenshaw in a statement (here). Travel goods eligible for possible GSP inclusion under the act include purses, briefcases and backpacks. Crenshaw said the bill would also give the travel goods industry viable market alternatives to China, which is not a GSP country. “Modernizing trade opportunities for U.S. retailers boosts economic growth and supports American jobs in an increasingly globalized economy,” said Smith, a member of the House Ways and Means Committee. “This legislation is a step in the right direction to updating our trade policy to help level the playing field for non-import sensitive products."