House Lawmakers Tell Ways and Means Leadership to Work to Renew GSP
Thirty-eight House lawmakers wrote an Oct. 27 letter urging House Ways and Means Committee Chairman Kevin Brady, R-Texas, and ranking member Richard Neal, D-Mass., to advance long-term Generalized System of Preferences renewal legislation “as quickly as possible,” with a looming program expiration date of Dec. 31. Led by Reps. Ralph Norman, R-S.C., and Jim Himes, D-Conn., the lawmakers said GSP slashed about $730 million in tariffs last year, and nearly two-thirds of GSP imports were raw materials, components and machinery, helping U.S. manufacturers and workers compete in a “tough global economy.”
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The specter of GSP expiration is bringing “new uncertainty” for U.S. companies relying on the program, several of which are placing delivery orders for 2018, the lawmakers said. Failure to reauthorize GSP before expiration could prompt U.S. companies to lay off workers, cut wages and benefits, and reduce investment, they said. GSP also incentivizes companies to source from beneficiary countries, and thereby promote development, the letter says. “GSP’s long list of eligibility criteria gives the United States a tool to encourage beneficiary countries to improve labor practices, protect intellectual property rights, treat U.S. investors fairly, and open their markets to U.S. goods and services.” Ways and Means and the Senate Finance Committee didn’t immediately comment. Brady last week said he expects his committee to advance GSP renewal legislation by the end of the year (see 1710250056).