Coalition for GSP Asks for Longer Renewal, CNL Reform
A letter sent by 23 trade associations and about 250 companies asks congressional leaders to renew the Generalized System of Preferences benefits program at least through Jan. 1, 2027, and to reform the competitive need limitations.
Sign up for a free preview to unlock the rest of this article
Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.
The GSP Coalition notes that the House version of GSP renewal would only renew for four years, and it already has been expired for 17 months, with $1.4 billion in duties paid during that time. Even though those duties will be refunded at renewal, companies still had to pay them at the same time as there were supply chain disruptions and high freight costs. "All of these issues have contributed to the highest U.S. inflation rate recorded in 40 years," the letter said.
They also asked that a bipartisan bill that would change competitive need limitations should be part of renewal (see 2112100058). It is not in the language in the House or Senate versions that will be reconciled during a conference committee covering the two chambers' China packages.
The letter also cited a report (see 2201240029) from a center-left think tank that said imposing too-strict standards for labor, environment or other issues may end up meaning most countries will be kicked out of GSP, hurting the workers who need it most. "Congress should ensure that all eligibility criteria allow USTR to distinguish between willful non-compliance and good-faith efforts when determining appropriate actions as part of country eligibility reviews," the letter said.