GSP renewal suggestion #4: minimize collateral damage when punitive actions are deemed necessary
No matter how many new incentives are added or how much direct help is given or new processes are created to ensure a fair outcome, there likely will be examples where GSP countries cannot or will not meet the eligibility criteria. Yet GSP termination is a blunt instrument. It can hurt the workers in developing...
Continue readingGSP renewal suggestion #3: prevent abuse/misapplication of new criteria
As Congress considers GSP renewal legislation, there is no question that new eligibility criteria will be added. There are lots of questions about whether they new criteria will help raise standards or simply lead to more lost benefits/higher tariffs on Americans. As noted, American companies have paid about $800 million in extra tariffs due to...
Continue readingGSP renewal suggestion #2: help countries make progress on the new criteria
Last week, we wrote about how American companies have paid about $800 million in extra tariffs due to recent GSP country terminations but there has been no progress on any of the issues raised in country reviews. Proposed GSP renewal bills include many new proposed eligibility criteria. If policymakers want to create an environment where...
Continue readingGSP renewal suggestion #1: make countries care more about keeping GSP benefits
Last week, we wrote about how American companies have paid about $800 million in extra tariffs due to recent GSP country terminations but there has been no progress on any of the issues raised in country reviews. There are lots of new proposed eligibility criteria, and policymakers want to create an environment where those criteria...
Continue readingExtra tariffs paid: $800 million. Policy goals achieved: None.
When it comes to GSP eligibility criteria, imposing higher tariffs without accomplishing any positive changes in GSP country policies is the absolute worst-case scenario. It is also the norm. Due to GSP country terminations of Turkey (May 2019) and India (June 2019) and partial suspensions of Thailand (April 2020, December 2020), American companies...
Continue readingGSP expiration cost American companies at least $83 million in April 2021
According to new research from the Coalition for GSP, expiration of the Generalized System of Preferences (GSP) program cost American companies at least $83 million in April 2021. Congressional authorization for GSP expired on December 31, 2020. In the first four months of expiration, American companies paid at least $308 million in extra taxes as....
Continue readingGSP renewal provisions included in Senate’s China competitiveness package
The Senate approved the United States Innovation and Competition Act (USICA) – a $250 billion piece of legislation focusing primarily on research and development funding – by a vote of 68-32. USICA includes the Trade Act of 2021 that was negotiated between Senate Finance Committee Chairman Ron Wyden (D-OR) and Ranking Member Mike Crapo ...
Continue readingChairman Wyden introduces GSP renewal legislation
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 tar...
Continue readingCarrots & sticks & GSP
New U.S. Trade Representative Katherine Tai will testify in front of the Senate Finance Committee today and the House Ways and Means Committee tomorrow on the Biden administration’s trade policy agenda. Ambassador Tai has given several recent speeches on new trade policy goals, including a recent interview where she was asked about trade rule...
Continue readingGSP expiration cost American companies at least $88 million in March 2021
According to new research from the Coalition for GSP, expiration of the Generalized System of Preferences (GSP) program cost American companies at least $88 million in March 2021. Congressional authorization for GSP expired on December 31, 2020. March was the most expensive month yet of GSP expiration: the $88 million in extra tariffs paid far...
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