30/06/2021
On May 18, 2021 Senate Finance Committee Chair Ron Wyden, D-Ore., announced legislation to update and reauthorize three expired trade programs: the Generalized System of Preferences (GSP), the Miscellaneous Tariff Bill (MTB) and the American Manufacturing Competitiveness Act (AMCA).
The Trade Preferences and American Manufacturing Competitiveness Act of 2021 will extend duty-free access to the U.S. market for certain developing countries under GSP until 2027, with important updates to eligibility rules that ensure trade policy rewards advances in human rights, women’s economic empowerment, labor, environment, rule of law and digital trade, among others.
Renewal of the Generalized System of Preferences (GSP)
-Extends the Generalized System of Preferences (GSP) program, which eliminates tariffs on certain goods from qualifying beneficiary developing countries, from December 31, 2020 until January 1, 2027.
-Adds new mandatory eligibility criteria, which countries must meet to be eligible for GSP, on human rights and the environment.
-Adds new discretionary criteria, which the President takes into account when designating a country as a GSP beneficiary, on the environment, women’s economic empowerment, rule of law, and digital trade.
-Updates the definition of “internationally recognized worker rights” to include the elimination of discrimination in occupation and employment, which aligns that definition with USMCA and other trade agreements.
-Provides a new requirement for regular country reviews and includes additional transparency requirements for administrative decisions made under the program.
-Provides new reporting requirements on how GSP promotes worker rights and women’s economic empowerment.
-Requires the USITC to study GSP utilization rates, rules of origin, and article eligibility rules.https://www.finance.senate.gov/imo/media/doc/ROS21834%20-%20GSP%20MTB%20AMCA.pdf
On June 08, 2021 The Senate approved the United States Innovation and Competition Act (USICA) – includes the Trade Act of 2021 that was negotiated between Senate Finance Committee Chairman Ron Wyden (D-OR) and Ranking Member Mike Crapo (R-ID) and adopted as an amendment by a vote 91-4.
Among the provisions, for GSP specifically the Trade Act would:
-reauthorize GSP, retroactively, through January 1, 2027
-add new criteria on environment, human rights, women’s economic empowerment, rule of law, good governance, anti-corruption, and digital trade
-require public hearings and comments before any country-specific actions can be taken
-extend notification requirements to partial suspensions and not just full terminations
-add new reporting requirements on justifications for review decisions and actions taken
-codify the Triennial Review process to review batches of GSP countries by region (launched in 2017)
-require new reports workers rights, women’s economic empowerment, and rules of origin
https://www.congress.gov/bill/117th-congress/senate-bill/1260
The Trade Preferences and American Manufacturing Competitiveness Act (H.R. 4037, introduced June 22 by Rep. Brady, R-Texas) would extend and modify the eligibility requirements for the Generalized System of Preferences.
https://www.congress.gov/bill/117th-congress/house-bill/4037?q=%7B%22search%22%3A%5B%22H.R+4037%22%5D%7D&r=1&s=2
Summary of H.R.4037 - 117th Congress (2021-2022): To amend the Trade Act of 1974 to extend and modify the eligibility requirements for the Generalized System of Preferences, to amend the Harmonized Tariff Schedule of the United States to modify temporarily certain rates of duty, and for other purpos...
