05/25/2021

New Legislation to Renew GSP and MTB Introduced

Senate Finance Committee Chairman Ron Wyden, D-Ore., has introduced legislation to update and reauthorize the Generalized System of Preferences (GSP) and the Miscellaneous Trade Bill (MTB). Both GSP and the MTB expired Dec. 31, 2020 effectively increasing import duties on nearly 7,000 products. If passed, the renewal would be retroactive to the expiration and extend benefits until January 1, 2027.

In a recent statement, the Coalition for GSP said “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 tariffs due to GSP expiration in the first quarter of 2021 alone. By now, tariff costs are likely approaching $400 million. The long-term extension would provide the certainty needed for companies to plan and invest, both in the United States and GSP beneficiary countries”.

A copy of the recent announcement by the Senate Finance Committee, including the full text of the legislation can be found here.

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