Congress Must Renew Important Trade Program Before End Of Year
As part of their end-of-year negotiations, members of Congress will decide whether to extend the Generalized System of Preferences (GSP) program.
For readers who are not familiar: what is GSP? Politico explained that the program waives duties on thousands of goods from developing countries in order to help those nation create jobs. The GSP also reduces costs for U.S. importers. In fact, in 2019, U.S. companies saved an estimated $1 billion in tariffs because of the GSP.
If the program is not renewed, companies will face millions of dollars in additional import taxes beginning on January 1, 2021 at a time when they are already struggling with reduced demand because of COVID-19.