The Coalition for GSP welcomes introduction of the Trade Preferences and American Manufacturing Competitiveness Act of 2021, which would renew the Generalized System of Preferences (GSP) through January 1, 2027, among other changes. Swift, retroactive renewal of the GSP program is critical. American companies paid at least $225 million in extra tariffs due to GSP expiration in the first quarter of 2021 alone. By now, tariff costs are likely approaching $400 million. The long-term extension would provide the certainty needed for companies to plan and invest, both in the United States and GSP beneficiary countries.
The Coalition for GSP continues to assess the potential impacts of the other proposed changes in the bill, including numerous new eligibility criteria. In a recent interview, U.S. Trade Representative Katherine Tai said that creating a race to the top on trade requires new incentives, and “when we talk about incentives, we’re talking about carrots and sticks.” The Coalition for GSP agrees with Ambassador Tai, and therefore has concerns that this bill contains many new “sticks” but no new “carrots” to incentivize GSP countries to meet proposed higher standards.
The Coalition for GSP looks forward to working with Chairman Wyden and other key stakeholders on GSP renewal legislation that will encourage a race to the top for companies and workers at home and abroad.