Pakistan – Renew GSP Today

GSP expiration means higher tariffs, lower sales for Wisconsin employee-owned company

Dan Anthony — Tue, 27 Jul 2021 15:48:27 +0000

Ciranda, Inc. employs 55 people in Hudson, Wisconsin. Founded in 1994, Ciranda supplies certified organic and non-GMO ingredients – with a focus on sustainable supply and fair trade practices – to American brands and manufacturers. In 2017, Ciranda became a 100% employee-owned company. It is among the many companies in the United States and around the world that needs Congress to renew GSP and refund tariffs paid immediately.

Due to GSP expiration, Ciranda has paid over $209,000 in extra tariffs on imports of tapioca powders and syrups, coconut products, rice syrup and powders from Brazil, Pakistan, Philippines, and Thailand. The need to pass these costs onto customers led sales to fall. Even if tariffs paid (eventually) are refunded, those lost sales can’t be regained. As an employee-owned company, everyone at Ciranda is impacted by those lost sales and profits.

Ciranda is a great example of the kind of trade GSP is meant to promote. Its qualification process includes an in-person visit to every supplier. While on-site, it observes each ingredient’s journey from the field to the processing plant. In addition to evaluating product quality, it surveys working conditions, fair labor practices, and the overall environmental health of the project. In 2020, Ciranda published a book highlighting the farmers around the world growing their product.

By eliminating U.S. tariffs on sustainable food ingredients, GSP helps companies like Ciranda do “more good” for workers and the environment in developing countries and the United States. Their example also highlights the risk of imposing too many eligible criteria on GSP countries for which higher tariffs are the only possible punishment. No matter how well-intentioned a new GSP criterion (e.g., on environment) may be, terminating GSP often hurts those meeting or exceeding even the highest standards. That’s why the Coalition believes Congress should consider changes to mitigate any punitive actions as part of GSP renewal, such as supporting partial (instead of full) terminations and/or creating a mechanism for good actors to retain benefits.

Note: Ciranda’s story came from a new Coalition survey on expiration impacts. GSP importers can take the survey here.

GSP Saved American Companies $58 Million in July 2016

Renew GSP Today — Fri, 23 Sep 2016 15:13:48 +0000

In July, the GSP program saved American companies $58 million on about $1.5 billion in imports. GSP saved U.S. companies $410 million in the first seven months of 2016. In the one year since renewal, GSP saved American companies about $700 million.

Some states, such as Connecticut and New York, saw particularly large increases in GSP imports and savings compared to July 2015, as shown in the graphic below.

In Connecticut, GSP imports increased by about 70 percent and savings by about 50 percent compared to one year earlier. Ferroalloys from South Africa, aluminum building materials and rubber gloves from Thailand, and parts for steering wheels from India all contributed to Connecticut’s GSP increases.

In New York, GSP imports increased by 22 percent and savings from GSP by 44 percent compared to one year earlier. Jewelry from Turkey and Bolivia, stainless steel flanges from India, and PET resin from Pakistan contributed most to New York’s GSP increases.

Savings on GSP imports from Pakistan nearly doubled, led by increased imports of lamps in New Jersey. GSP eliminated about $250,000 in import taxes on fresh flowers from Ecuador in July, with more than $230,000 saved on imports into Florida alone.

If your company imports under GSP, be sure to answer our GSP renewal impacts survey here.

A-GSPC Ambassadors Urge Congress to Renew GSP

Dan Anthony — Wed, 12 Jun 2013 18:28:23 +0000

Earlier this week, our friends at the Alliance for GSP Countries (A-GSPC) sent a letter to congressional leaders signed by the Ambassadors from Algeria, Bangladesh, Ecuador, Fiji, Georgia, Indonesia, Moldova, Mongolia, Pakistan, Philippines, Sri Lanka, Thailand, Tunisia, Uruguay, and Yemen. The letter states:

The GSP’s importance to its beneficiary countries cannot be underestimated. The import program benefits more than 3.8 billion people living in two-thirds of the world’s economies. They rely on GSP duty-free exports to the United States to create tangible economic development.

The letter also noted that when GSP was allowed to expire for 10 months back in 2011:

U.S. imports of GSP-eligible items during that period decreased by over 17 percent, while overall U.S. imports increased by 15 percent.

We’re in the process of collecting company/association signatures for a similar U.S. business letter. If you’d like your organization to be on that letter, just add your name (if you haven’t already) to our GSP Supporter List. But act quick, as our letter will be going out VERY soon!