Yesterday, President Obama signed into law the Trade Preferences and Extension Act, which, among other things, reauthorizes the Generalized System of Preferences (GSP) until December 31, 2017, with retroactive treatment for eligible goods that were imported after the program lapsed on July 31, 2013.
Since authorization of the GSP program lapsed in mid-2013, U.S. businesses that utilize GSP have paid over $1 billion dollars in tariffs on GSP products that previously entered the United States duty-free. This has been an especially heavy burden for the many thousands of small businesses that count on GSP to keep their costs down. Renewal of the program will eliminate these duty costs on GSP goods, ease the flow of trade from many developing countries, including some of the poorest countries in the world, and benefit U.S. businesses and consumers alike.
Products that are eligible for duty-free treatment under GSP include: most manufactured items; many types of chemicals, minerals and building stone; jewelry; many types of carpets; and certain agricultural and fishery products.