A small deal that would restore India's Generalized System of Preferences benefits is something that U.S. Trade Representative Robert Lighthizer and Commerce Minister Piyush Goyal have made headway on, Lighthizer said while speaking to the Confederation of Indian Industry. “My guess is we are not far away from a deal like that. Keep in mind, obviously, we have a political change going on over here and that’s going to be a bit of a setback, certainly, to the extent that I can facilitate that, which I would be happy to do it, but there is going to be some changes and my guess is that is going to slow things up,” he said Dec. 16 during an online interview.
House Ways and Means Committee Chairman Richard Neal, D-Mass., told International Trade Today that lawmakers are still working on renewing the Generalized System of Preferences benefits program. “GSP's a little bit stickier,” he said, adding that the Miscellaneous Tariff Bill and GSP both “seem to be stalled.”
International Trade Today is providing readers with the top stories from Dec. 7-11 in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.
Senate Finance Committee Chairman Chuck Grassley, R-Iowa, accused Democrats of holding up renewal of the Generalized System of Preferences benefits program and said it's unjustified, “because it's always been very bipartisan, and for the most part, almost unanimous.” Referring to Democratic proposals to reform GSP, he said Dec. 15 that “some of the things they’re asking to do are legitimate, but we didn’t hear about some of these things until November 27th, and some of them are technical things that it takes a long time to work out.”
Chemicals are not among the top imports under the Generalized System of Preferences benefits program -- travel goods, jewelry, car parts, and lamps are -- but chemical distributors are still anxious that the program be renewed before it expires. Eric Byer, CEO of the National Association of Chemical Distributors, said in a phone interview that about 50% of his 250 members benefit from GSP tariff breaks. He said last time GSP expired, it took a couple of months to get reimbursed even after GSP was restored. He gave an example of a small company near Philadelphia that had to pay $250,000 in additional tariffs during the expiration, for a company that only had about 25 employees. Byer said citric acid is imported by many of his members, and if GSP expires, a 6% tariff will be applied to that citric acid coming from Thailand. Erin Getz, coordinator of governmental affairs for NACD, said 110 million pounds annually is imported from Thailand.
Sen. Josh Hawley, a populist Republican from Missouri, has introduced a Generalized System of Preferences bill that would only allow the tariff benefits to be granted when unemployment is below 4% in the U.S. The unemployment rate has been below 4% less than two years of the last 20. This version of GSP would also bar any country that the Department of Labor identifies as a country where there's a problem with forced labor or the worst forms of child labor.
CBP created Harmonized System Update (HSU) 2008 Dec. 7, containing 37,804 Automated Broker Interface records and 6,935 Harmonized Tariff Schedule records, it said in a CSMS message. The update covers recent restrictions to Thailand's benefits under the Generalized System of Preferences benefits program and cotton fee changes (see 2010020009). Further information: Jennifer Keeling, Jennifer.L.Keeling@cbp.dhs.gov
Rep. Kevin Brady, R-Texas, criticized the Democratic approach to the Generalized System of Preferences benefits program renewal after Ways and Means Trade Subcommittee Chairman Earl Blumenauer, D-Ore., introduced a six-month extension that would change eligibility requirements (see 2012080049). “This is a surprise, and not a welcome one, at this point in the negotiations,” Brady said the evening of Dec. 8. “While I respect the view of Democrats that changes are needed to the program, I support a clean extension that allows us to consider changes under regular order.” Senate Finance Committee Chairman Chuck Grassley, R-Iowa, introduced an 16-month clean GSP renewal, but Democrats in the Senate do not support it, as they prefer an approach that requires higher standards from beneficiary countries.
International Trade Today is providing readers with the top stories from Nov. 30-Dec. 4 in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.
House Ways and Means Trade Subcommittee Chairman Earl Blumenauer, D-Ore., introduced a bill that would add eligibility requirements to the Generalized System of Preferences benefits program, including whether the country either has established, or is making continual progress toward establishing, “the rule of law, political pluralism, the right to due process, a fair trial and equal protection under the law,” and whether those countries are working to “reduce poverty, increase the availability of health care and educational opportunities,” among other goals, including combating corruption. It also would predicate eligibility on whether a country effectively enforces its environmental laws and regulations, and is fulfilling its international environmental obligations, including those related to public health.