GSP saved American companies $72 million in July

GSP saved American companies $72 million in June, about $17 million less (-19%) from July 2018. It marked the second month in a row that year-over-year savings due to terminated GSP for India and Turkey. In the first seven months of 2019, GSP saved American companies $628 million.

Lost GSP for India cost American companies an estimated $30.4 million in July, while lost GSP for Turkey cost them another $6.4 million. The impacts of the decisions are clear, as shown in the graph below. Before June, year-over-year GSP rose in 37 straight months.

GSP savings from other countries continued to grow, increasing $11.1 million (18%) from July 2018 to July 2019. Savings on imports from Cambodia grew by $8.1 million, from the Philippines by $2.7 million, and from Indonesia by $1.7 million

But growth from other countries was not able to offset the loss of GSP ineligibility for India and Turkey throughout the country: 41 states plus DC and Puerto Rico saw GSP savings decline from July 2018 to July 2019.

By value, the states with the largest year-over-year savings declines were New Jersey (-$3.4 million), New York (-$3.3 million), Florida (-$2.5 million), Texas (-$2.1 million), Michigan (-$1.3 million), South Carolina (-$1.1 million), Maryland (-$1.0 million), Kentucky (-$976,000), North Carolina (-$858,000), and Pennsylvania (-$852,000).

By percent, the states with the largest year-over-year savings declines were New Mexico (-87%), Louisiana (-78%), Vermont (-75%), Iowa (-72%), and West Virginia (-54%).