A bipartisan letter from 33 House members representing pecan-growing states asks U.S. Trade Representative Robert Lighthizer to argue for lower tariffs on U.S. pecans imported by India as part of an agreement to reinstate that country's participation in the Generalized System of Preferences benefits program. The Oct. 15 letter, led by Georgia Reps. Austin Scott (R) and Sanford Bishop (D), said the 36% tariff on pecans makes it difficult for American producers to compete in the market.
The Coalition for a Prosperous America, a group allied with the Trump approach to trade, wrote to the heads of the Senate Finance Committee and House Ways and Means Committee to argue that a clean renewal of the Generalized System of Preferences benefits program neither serves American economic interests nor furthers economic development in eligible countries. “The primary advocates for GSP are foreign countries, importers and multinationals seeking to buy the lowest priced products from the lowest wage countries,” the CPA wrote Oct 15. “Those interests are trying to avoid buying from American suppliers who hire American workers and comply with American labor and environmental laws.”
The National Taxpayers Union, reacting to a bipartisan resolution opposing duty-free import of apparel and shoes from all Generalized System of Preferences beneficiary countries, said that resolution (see 2010060027) ought to be called the keep-apparel-production-in-China resolution. There is no public push from apparel importers to add the category to GSP on the current renewal.
Two Democrats and a Republican introduced a resolution that opposes including apparel, textile and footwear products under the Generalized System of Preferences benefits program, because of their fears that expanding GSP product eligibility would hurt Caribbean, African and Latin American apparel producers. Rep. Albio Sires, D-N.J., posted a press release Oct. 6 saying that keeping apparel out of GSP works to strengthen Western Hemisphere supply chains and confront “a rising China.”
A task force led by Republican House members recommended more trade agreements, engagement at the World Trade Organization, and “a strategic plan for Phase Two negotiations” with China to address distorting subsidies, dominance of state-owned enterprises that dictate the terms of trade and data, and forced tech transfer and joint venture requirements. It also said the U.S. should be aggressive in enforcing the China phase one agreement, particularly on forced tech transfer, intellectual property and barriers to agriculture imports.
Senate Finance Committee Chairman Chuck Grassley, R-Iowa, said all 100 senators were being called on Sept. 29, and if none of them oppose renewing the Caribbean Basin Trade Partnership Act, it could pass Sept. 29 or 30. The trade preference program expires Oct. 1. Grassley told International Trade Today during a Sept. 29 call with reporters that he won't know if it can pass before expiration until all the senators weigh in.
International Trade Today is providing readers with the top stories from Sept. 21-25 in case they were missed. All articles can be found by searching on the titles or by clicking on the hyperlinked reference number.
Seven senators who represent rice-growing constituents, led by Sen. John Boozman, R-Ark., are asking U.S. Trade Representative Robert Lighthizer to remove rice from the list of eligible products under the Generalized System of Preferences benefits program. The six senators from Arkansas, Mississippi and Louisiana along with Sen. John Cornyn, R-Texas, signed the Sept. 21 letter. “Over the past several years, we have seen an annual uptick in rice imports from countries that have GSP eligibility,” they wrote. “Coupled with our competitors’ high and rising domestic subsidies, these unfair advantages are having negative implications for our rice farmers, millers, merchants and allied businesses, who are losing domestic market share.”
House Ways and Means Committee Trade Subcommittee Chairman Earl Blumenauer, D-Ore., cast doubt on Congress voting to renew the Generalized System of Preferences trade benefits program before it expires, and on passing a new Miscellaneous Tariff Bill to cover imports in 2021 and 2022. He told an online audience at the Washington International Trade Association Sept. 23 that it's too soon to say whether a vote would be possible.
The Heritage Foundation, a conservative think tank, is arguing that not only does the Generalized System of Preferences benefits program need to be renewed this year, the length of authorization should be substantially lengthened. It is currently on a two-year authorization; Heritage says 10 years would make it more useful to American businesses that take advantage of the tariff relief, as making supply chain decisions takes time.