Industry Groups Urge Congress To Renew The GSP
The U.S. Generalized System of Preferences (GSP) program is designed to promote economic growth in the developing world by providing preferential duty-free entry for thousands of products when imported from one of 121 designated beneficiary countries and territories. It is set to expire at the end of the year, meaning potentially higher import taxes on some products.
The GSP program also supports U.S. jobs. U.S. businesses imported well over $20 billion worth of products under the GSP program in 2019, including many inputs used in U.S. manufacturing. The GSP program, which was instituted on January 1, 1976 by the Trade Act of 1974, also saved U.S. companies more than $1 billion in taxes in 2019.
The products covered by the GSP program are by design non-sensitive items, meaning they are not manufactured domestically in the U.S. Products that are eligible for duty-free treatment under GSP include: most manufactured items; many types of chemicals, minerals and building stone; jewelry; many types of carpets; and certain agricultural and fishery products.
PPAI has joined nearly 300 U.S. organizations in calling on Congressional leaders to renew the GSP during the lame duck session. On December 1, they sent a letter to Senate Majority Leader McConnell, Senate Democratic Leader Schumer, House Speaker Pelosi and House Republican Leader McCarthy, urging immediate passage of legislation extending the GSP. The Coalition for GSP, a group of American companies and trade associations organized to educate policymakers and others about the program’s benefits, say that should the GSP lapse, U.S. companies will pay $2-3 million per day in new tariffs. The GSP program has historically seen broad bipartisan support, with the last House vote, in 2018, passing 400-2, and the last Senate vote, in 2015, passing 97-1.
Industry members can add their voice to the call to renew the GSP. Click here to sign on.