According to new research from the Coalition for GSP, expiration of the Generalized System of Preferences (GSP) program cost American companies nearly $70 million in January 2021. Congressional authorized for GSP expired on December 31, 2020. Failure to renew GSP is already costing American companies and workers.
One California small business with about 20 employees canceled plans to hire two new workers in January. Longer-term investments that could add 10-15 production jobs and 3-4 more engineers also are on hold. Here, the company’s president describes how he would immediately hire new workers if GSP is renewed, but expansions depend on how it is renewed.
A critical point: the uncertainty created by Congress prevents the types of investments and American job creation that Congress (says it) supports. While expiration means no jobs, and a 1-2 year renewal would mean 2 jobs, a 5+ year renewal could lead to 15-20 skilled manufacturing and engineering jobs. Yet for the last 3 months Congress has chosen the “no jobs” option.
Another important point: all of the company’s GSP imports are used to manufacture other products in the United States. Due to GSP expiration, the company has raised its’ prices 10-15% depending, meaning other American manufacturers are now less competitive in selling in the United States and global markets.
With each passing day adding millions of dollars in new costs, it is past time for Congress to help American companies and workers by renewing GSP.