GSP, MTB Will Expire at End of Day Dec. 31
The Generalized System of Preferences and Miscellaneous Tariff Bill will expire at the end of the year, as neither provision moved with the end-of-year spending bill and COVID-19 relief package.
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
The Coalition for GSP released a statement saying that businesses that take advantage of GSP “are incredibly frustrated and disappointed that Congress failed to renew GSP.” They said that even if Congress passes a retroactive renewal, as it did last time, “many negative impacts from GSP expiration cannot be undone.” The coalition predicted that workers would be laid off as companies' tariff bills rise.
Rep. Kevin Brady, R-Texas, the ranking member on the House Ways and Means Committee, told International Trade Today on Dec. 21 that he's frustrated by both expirations. “I think there were a lot of last-minute objections to provisions in the MTB that I don’t know were necessarily valid,” he said during a phone call with reporters. “And that has an impact on the process. I hope that can be worked out as early next year as we can.”
He called the bill introduced by the Trade Subcommittee chairman (see 2012080049) one with “extraordinary demands,” but said he hopes to have conversations about bipartisan reforms to GSP. He also said he would support India's return to GSP participation if India agrees to some market access improvements.
He criticized a bill introduced by Sen. Josh Hawley, R-Mo., that would greatly limit the eligibility for GSP and tie its existence to U.S. unemployment levels (see 2012100050). “That doesn’t make sense in my view. Look, GSP is an opportunity to strengthen trade relationships with our partners around the world.” He said officials hope that over time, the U.S. can reach comprehensive trade agreements with these developing countries.