USTR Chief Urges GSP Renewal as Program Expires
The top administration trade official, U.S. Trade Representative (USTR) Michael Froman, pressed Congress on July 31 to pass Generalized System of Preferences (GSP) renewal legislation. Despite the introduction of legislation in both the Senate Finance Committee and the House Ways and Means Committee, the program expired at midnight on July 31.
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“Beginning August 1, U.S. businesses and consumers will pay more for thousands of goods imported under the GSP program, including many inputs for U.S. manufacturing,” said Ambassador Froman. “The Obama Administration urges Congress to extend this important trade program, which increases U.S. competitiveness, keeps costs low for U.S. consumers, and benefits some of the world’s poorest countries. “
Due to procedural logistics, lawmakers are now likely incapable of pushing through legislation prior to the beginning of August recess at the end of the week. After the Senate bill surfaced on July 18, Senator Tom Coburn, R-Okla., voiced opposition to the funding mechanisms incorporated in the legislation (see 13073016). In the ensuing days, the Senate failed to strike a compromise.
“Senator Coburn will not release his hold on the GSP renewal bill,” said the Coalition for GSP (here), noting U.S. importers will now pay $2 million per day in previously-absent tariffs. “Since Congress adjourns on Friday and doesn’t come back until after Labor Day, these new payments will be significant.”