Trade Committees Indicate GSP-MTB Legislative Package Could Come Together This Fall
Senate Finance Committee Democrats and House Ways and Means Republicans have floated the idea of advancing packaged legislation including Generalized System of Preferences renewal alongside a miscellaneous tariff bill (MTB) or African Growth and Opportunity Act-related bill before the end of 2017, according to a trade lobbyist close to the committees. Committee staffers haven’t stated “emphatically that they would” move forward with such an action, but “it makes sense,” the lobbyist said. Trade industry executives in June said groups were eyeing the possibility of an MTB set to be considered as early as November to serve as a potential vehicle for GSP renewal (see 1706200050).
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Other trade observers, including Barnes and Thornburg partner David Spooner and National Retail Federation Vice President for Supply Chain and Customs Policy Jonathan Gold, also believe some sort of GSP package, perhaps to include MTB, would make sense. While he said he hasn’t heard anything definitive on the timing for congressional advancement of GSP renewal legislation, Gold said in a Sept. 11 email that he has heard for “quite some time” that there could be a GSP-MTB package in the works, calling both “must-pass” bills for this fall. “This is when the committees need to prioritize time for renewal,” Gold said. “Since companies are already making their sourcing decisions now for 2018, it is even more important for GSP to be renewed so that these companies won’t be hit with a tariff on GSP-eligible products if the program expires in December.” GSP is currently set to expire Dec. 31.
A spokesman for Senate Finance Democrats didn’t elaborate on any considerations for a GSP or MTB bundle, but said committee Democrats hope Finance can deliver both pieces of legislation on a bipartisan basis before the end of the year. Spokespeople for the House Ways and Means Committee and Senate Finance Republicans didn’t comment.