Broker Groups, Retailers Push Travel Goods Inclusion in GSP
Nearly two dozen customs broker and importer associations and retail organizations banded together in recent days to press U.S. Trade Representative Michael Froman to support the addition of travel goods to the Generalized System of Preferences. Industry petitions for those additions were due by Oct. 16 as part of USTR’s 2015 annual review for GSP (see 1508180027).
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Congressional approval of the travel good additions show the products don’t threaten domestic industry, and therefore USTR, working together with the International Trade Commission (ITC), should give the go-ahead to slash tariffs on those goods, said those groups in an Oct. 14 letter (here). Congress authorized the inclusion of travel goods, also referred to as outdoor goods, in GSP as part of trade preferences legislation signed by President Barack Obama in June (see 1504230001). A number of state and local level customs broker and freight forwarder associations signed onto the letter, as did retail groups such as the U.S. Fashion Industry Association and the American Apparel and Footwear Association.
Those groups reiterated arguments that GSP inclusion of travel goods will translate to lower consumer prices, while also advancing the program’s goal of promoting global development. “Dozens of developing countries stand to benefit,” said the letter. “Currently, most travel goods are made in just a handful of countries. Duty-free access will create value-added export opportunities for GSP beneficiary countries, creating jobs, and diversifying their economic growth.” The ITC hasn’t yet released its assessment of the petitions. The agency in recent weeks sent similar analysis for USTR’s truncated 2014 GSP review (see 1509040018). USTR didn’t respond for comment.