Senate Introduces GSP Renewal Legislation
Senate Finance Committee Chairman Max Baucus, D-Mont. and Ranking Member Orrin Hatch, R-Utah, introduced Generalized System of Preferences (GSP) renewal legislation late July 18. The announcement comes in the wake of House GSP renewal legislation, introduced July 17 (see 13071819). The GSP system is slated to expire on July 31, at which point U.S. importers will face steep hikes in tariff rates unless renewal law is passed.
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“GSP is good for the American economy, helping domestic companies save millions of dollars in tariffs and supporting much-needed job creation throughout the nation. At the same time, GSP helps developing countries around the world reduce poverty through trade,” said Hatch in a July 19 press release. “I will continue to closely monitor the Administration’s implementation of the program as well as the trade practices of the beneficiary countries to make sure they meet the statutory eligibility criteria. But, given the sluggish state of economic growth in this country, we should not allow this program to expire.”
The Senate bill also includes a corporate tax adjustment and amendment to the Consolidated Omnibus Budget Reconciliation Act of 1985.