AAFA, Senate Finance Committee Urge Administration to Apply Full GSP Benefits to All Travel Goods
The Senate Finance Committee and American Apparel and Footwear Association CEO Rick Helfenbein were among those who urged the Office of the U.S. Trade Representative on Oct. 18 to apply duty-free benefits for all countries and all 28 travel goods eligible such treatment under the Generalized System of Preferences. The interagency Trade Policy Staff Committee (TPSC) on Oct. 18 heard public testimony from interested stakeholders, following a USTR request for additional public input after deferring GSP decisions for additions of travel goods produced in GSP beneficiary developing countries (see 1608240018). In written testimony (here), Helfenbein reiterated industry arguments submitted in comments to the TPSC that providing the benefits would help U.S. producers source outside of a dominant China, and that the benefits wouldn’t hurt a niche domestic market. “Productivity in developing countries just can’t match what the levels are in China,” Helfenbein said. “The elimination of duties will level the playing field so all can compete.”
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In a bipartisan letter to U.S. Trade Representative Michael Froman (here), Senate Finance Committee Chairman Orrin Hatch, R-Utah, and Ranking Member Ron Wyden, D-Ore., and 12 other senators expressed optimism after USTR reopened the additions for review in August. They said USTR’s initial deferral was “disappointing,” because it caused commercial uncertainty and didn’t comport with Congress’ authorization for duty-free treatment for the 28 travel goods in question, enacted through the Trade Preferences Extension Act of 2015. They said it is still “unclear” why the Obama administration decided to extend GSP benefits to only least-developed beneficiary developing countries and African Growth and Opportunity Act countries on June 30. “While we continue to question the soundness of the Administration’s initial decision, we are pleased that it has elected to review this issue further and are hopeful that a decision will be reached that comports with Congress’ intent, encourages economic growth in developing countries, and provides economic uncertainty and more meaningful opportunities for U.S. businesses, workers, and consumers,” the letter says.