AAFA Calls for GSP Partial Refund Separate From Renewal
The American Apparel and Footwear Association said it wants Congress to pass a bill that would refund tariffs paid for goods eligible for the Generalized System of Preferences benefits program that entered in 2021 and through the end of July this year, though without renewing the program..
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"The apparel and footwear industry encourages Congress to quickly pass H.R. 8906 to support American companies that are committed to the values of the Generalized System of Preferences program, and to help mitigate the costs faced by our nation’s supply chains,” AAFA CEO Steve Lamar said. GSP covers luggage, backpacks and other accessories sold by AAFA members.
"While long-term renewal of the GSP program is still a top priority, this bill would provide companies with stop-gap relief as they continue to support the American economy," he said.
Renewal of GSP seems to be held up by an impasse between Republicans and Democrats over renewing Trade Adjustment Assistance, a program that pays for training, extended unemployment and health insurance subsidies for workers displaced due to foreign competition. Democrats don't want to move GSP without TAA, and Republicans don't want to vote for TAA, because they feel it only deserves to exist if the U.S. is working on more free-trade agreements (see 2209140056).