Industry Renews Push for GSP Travel Goods Additions
Industry groups renewed the push for duty-free treatment for 28 travel goods imported from beneficiary developing countries under the Generalized System of Preferences (GSP), claiming in a letter (here) to President Donald Trump that inaction costs industry over $200,000 daily in duties paid. The 17 groups, including the American Apparel & Footwear Association, the National Retail Federation and the Outdoor Industry Association, said those duties result in higher expenses for consumers and impair U.S. companies’ ability to hire. “We urge you to immediately issue a proclamation designating all statutorily eligible travel goods products for all GSP-eligible countries in the GSP program,” the groups said to Trump, Commerce Secretary Wilbur Ross and Acting U.S. Trade Representative Steve Vaughan.
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The Trade Preferences Extension Act (TPEA) of 2015 authorized duty-free treatment for the 28 different goods, but last year the Obama administration deferred decisions on the goods produced in non-least developed beneficiary developing countries (see 1607010008). The groups pointed to the TPEA, the prospect of increased trade enforcement leverage over GSP beneficiary developing countries, as well as the fact that most of the travel goods are currently imported from China as justifications for applying duty-free treatment. “The situation and facts have been thoroughly vetted by Congress, the U.S. International Trade Commission, and the interagency Trade Policy Staff Committee,” the trade groups said. “The conclusion was unanimous: GSP benefits should apply to all eligible countries for all travel goods in question.”
Meanwhile, U.S. trade representative nominee Robert Lighthizer will “carefully review” whether to apply the duty-free treatment sought by industry, if confirmed, he said in response to questions posed by the Senate Finance Committee after Lighthizer’s March 14 confirmation hearing (here) . Lighthizer also pledged to consult with that committee and the House Ways and Means Committee on the issue, and “advise the President accordingly.” In separate questions to Lighthizer, Finance ranking member Ron Wyden, D-Ore., and committee member Sen. Pat Roberts, R-Kan., both expressed a desire for the Trump administration to apply GSP duty preferences for beneficiary developing countries for the 28 travel goods.