On Friday, we published the first preliminary finding from our new GSP renewal survey: that nearly 1 in 4 companies was still waiting for refunds after one year.
Today, we want to highlight the responses to another question that had not been asked in the past, namely whether or not the products receiving duty-free benefits under GSP were later exported from the United States. Once again, the findings might surprise readers: more than half of respondents said their GSP imports are incorporated into U.S. exports.
While past reports have focused on the positive domestic impacts of GSP on American businesses and workers, this is a very important finding from a trade policy perspective. In short, renewing GSP makes U.S. exports more competitive.
Among the respondents naming specific countries, the top destinations include Canada, Mexico, Japan, and the United Kingdom. Among those naming regions, the top destinations include Europe (or EU) and Central and South America.
The preliminary results are useful, but more responses are necessary to make compelling arguments about GSP promoting U.S. exports. If you haven’t answered already, please take a moment to answer the survey here.