New Push to Renew GSP

There has been a new push to renew the Generalized System of Preferences  in the Senate Finance and House Ways and Means Committees before the August recess.  The Generalized System of Preferences is the preferential treatment of duty for certain commodities and imports from specified developing countries. GSP expired on July 31, 2013. Some feel that the renewal of GSP may be affected by a lame duck Congress and the budget cuts required to allow for the abatement of duty on imports.

Ambassadors from Ukraine, Moldova, and Georgia have written letters to Congress asking for the renewal of GSP as the expiration has affected their countries’ ability to be competitive in the world marketplace. For example, since the expiration of GSP, Ukraine’s exports to the United States have dropped considerably. Given the current political and economic circumstances in Ukraine, it is understandable that GSP is imperative to their economic stability and job security.

According to renewGSPtoday.com, U.S. importers have paid $570 million in GSP  tariffs since it expired in July of last year. The generalized system of preferences is meant to encourage U.S. companies to import from developing countries and contribute to their economies. The preferential treatment of duty makes the foreign exporters more competitive in the global marketplace and lessens their barrier to entry in the United States.