Will "Lame Duck" Congress Reauthorize GSP?
One of the many issues left for the "lame duck" session of Congress to deal with is the extension of the Generalized System of Preferences (GSP) program that is set to expire on December 31, 2006. While a number of bills have been introduced to reauthorize GSP (see, e.g., S. 3933, S.3905, H.R 6076, H.R. 5070), it is unclear whether GSP can be reauthorized before its expiration date and in what form it will be reauthorized.
GSP extends duty-free treatment to selected imports from beneficiary developing countries. In 2005, U.S. imports under GSP were greater than $27 billion.
On the House side, outgoing Ways and Means Chairman Bill Thomas (R-CA) has indicated his support for including GSP reauthorization language in a tax-cut extension bill expected to come before the full House during the first week of December. However, Chairman Thomas has indicated his intention to modify the GSP program to exclude certain products from India and Brazil.
The issue of graduating India and Brazil entirely from the trade preference program has remained somewhat of a contentious issue on Capitol Hill. Many Members of Congress remain reluctant to agree to a preference program that extends benefits to India and Brazil given these countries obstinacy in concluding the current multilateral Doha round of free trade talks.
On the Senate side, outgoing Senate Finance Committee Chairman Grassley (R-IA), a stern critic of India and Brazil given their actions in the Doha Round, has stated his preference to graduate Brazil and India from GSP.
In the meantime, the U.S. Chamber of Commerce, the GSP Coalition and other pro-GSP groups continue their efforts to make the case that reauthorization of GSP is beneficial for U.S. manufacturing companies and consumers.
Labels: Customs
|posted by Douglas N. Jacobson| Permalink 
