California accounts for more than a quarter of GSP savings, more than the next 3 states – New York, Florida, Texas – combined. Georgia, New Jersey, Ohio, Illinois, Washington, and Pennsylvania round out the top 10 states for GSP savings in 2020.

Estimated GSP savings for Colorado grew from $4 million in 2019 to $14 million in 2020, by far the largest increase. Estimated GSP savings also grew in Wisconsin (+$869,000), Arkansas (+$478,000), Washington (+$300,000), Delaware (+$73,000), and Wyoming (+$34,000). Estimated savings fell in all other states.

While Covid-19 had big impacts on GSP imports in the spring, declines were largely due to country suspensions. Excluding products impacted by country suspensions (e.g., India, Turkey, Thailand), most states’ GSP savings grew. For example, New York’s GSP savings grew by $15 million on non-impacted products but fell by $2.5 million overall due to country suspensions. Similarly, Texas’ savings GSP by $9 million on non-impacted products but fell by over $7 million overall.

Since GSP expired on December 31, American likely have paid about $110 million in tariffs that previously would’ve been “GSP savings.” It is critical that Congress renew GSP – with refunds for tariffs paid – as soon as possible. To help the Coalition for GSP educate policymakers on who is hurt by expiration (and how), companies are strongly encouraged to:

• join the Coalition for GSP
• add their name to the free GSP supporter list
• answer our very short survey on GSP expiration impacts to date

1. The GSP program helps protect American workers, manufacturers, farmers, and ranchers from unfair treatment in more than 120 trading partners. The GSP program’s extensive eligibility criteria, along with the Annual Review process, ensures that interested parties have regular opportunities to address perceived short-comings in GSP beneficiary developing countries (BDCs).
2. Expanding GSP product coverage would make it a more effective “carrot and stick.” While incredibly important to current users, only 9.4 percent of U.S. imports from BDCs claimed GSP preferences in 2016. In fact, the United States collected about $6.60 in tariffs on imports from GSP countries for each $1 in tariffs waived by the program. The Administration could take a number of unilateral steps to increase product coverage without changing the GSP statute.
3. The GSP program supports American jobs, exports, investments, but lapsed authorizations undermine such American benefits. The on-again, off-again nature of the GSP program since 2010 helps show the benefits of GSP to American jobs, exports, investments – when in place. Conversely, American jobs, exports, investments, including into research and development, suffer when GSP benefits lapse.

As the Trump administration and Congress work together to develop a new trade policy, it is crucial that organizations continue to educate policymakers about the importance of GSP for American companies and workers. The Coalition strongly encourages importers that benefit from GSP to take action in support of GSP renewal before its rapidly approaching expiration on December 31.