More Than 300 Companies and Trade Groups Ask for GSP Renewal
Importers that used to benefit from the Generalized System of Preferences program have paid about $750 million in tariffs since the program expired at the end of last year, according to a Sept. 21 letter to the leaders of the Senate Finance Committee and House Ways and Means Committee. The letter, signed by more than 300 trade groups and firms, says the lapse of the GSP benefits program hurts workers at importing companies, which are also dealing with much higher freight costs and pandemic impacts.
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The Senate has already passed a GSP renewal, but House Democrats are seeking a GSP renewal with more eligibility requirements. The letter's writers say they are concerned about this, calling it a punitive approach, especially since there is no assistance to help countries meet the criteria. "Already, GSP’s share of U.S. imports has declined from 1.8% in 2006 to less than 0.7% in 2021. If GSP covers less trade each year, it cannot meet its original development goals, let alone create new leverage in areas such as rule of law, the environment, and women’s rights," they wrote.
They also say that the "competitive need limitations" rules should be reformed, as they say up to one-third of potential GSP imports are excluded.