U.S. importers are hopeful that legislation introduced in the House this week to renew the Generalized System of Preferences (GSP) for two years will pass before the duty-free import program expires July 31.
In 2012, GSP saved American companies nearly $750 million on imports from 127 developing countries.
“We are so happy that the renewal process has taken this very important step,” said Laura Baughman, executive director of the Coalition for GSP. “The clock is ticking more loudly as the days advance toward July 31.
“Not only will expiration adversely affect more than a hundred developing countries who use GSP, but it will hurt their U.S. customers and workers who use products imported under GSP to make other products in the United States,” she added.
Daniel Anthony, director of research and government relations for the coalition, said about 300 companies and trade associations have called on Congress to renew GSP before it expires the end of the month. “They urge swift consideration by the Senate to ensure that American companies do not face a $2 million per day tax hike on Aug. 1,” he said.
“If Congress fails to extend GSP before the deadline, American retailers, mostly small- and medium-sized businesses, will face an extra $2 million per day in new taxes on everyday goods and inputs, like jewelry and sporting goods, which will translate into higher costs and prices for consumers,” warned David French, the National Retail Federation’s senior vice president.
The GSP renewal legislation (H.R. 2709), which was introduced by House Ways and Means Committee Chairman Dave Camp, R-Mich.; Ranking Member Sandy Levin, D-Mich.; Trade Subcommittee Chairman Devin Nunes, R-Calif.; and Trade Subcommittee Ranking Member Charles Rangel, D-N.Y., would renew GSP through September 2015.
U.S. importers press for GSP renewal
