RETRO GSP Act Repayment of Extra Tariffs with Renewal Of GSP Act
Impact
The bill seeks to retroactively pay back tariffs that American companies incurred due to the absence of the GSP program. It is designed to alleviate the economic pressures affecting these companies by retroactively liquidating or reliquidating tariffs as if they had been enforced on the lapse's last day. This measure is expected to provide vital relief to businesses that are struggling with increased costs since the program's expiration and aims to restore essential trade relationships that support U.S. foreign and economic policy objectives.
Summary
House Bill 7555, titled the 'Repayment of Extra Tariffs with Renewal Of GSP Act' or the 'RETRO GSP Act', aims to extend the Generalized System of Preferences (GSP) program until December 31, 2029. This program has been an essential part of U.S. trade policy for decades, helping to foster economic growth in low and middle-income countries while providing benefits to American consumers and businesses. The bill highlights the significant financial burden on American companies caused by the lapse in GSP authorization that occurred on December 31, 2020, leading to over $3 billion in tariffs paid by these businesses.
Contention
The renewal of the GSP program and its retroactive aspects are likely to generate discussions around trade equity, as the bill encompasses both economic and strategic interests vital for the U.S. engagement with developing economies and its competition with countries such as China. Proponents argue that this renewal is essential for maintaining the U.S.'s global competitiveness and economic engagement with developing markets. However, concerns may arise regarding the implications for domestic industries and the long-term effectiveness of relying on such programs to stimulate trade and economic growth.
To provide for the liquidation or reliquidation of certain entries of steel and aluminum products retroactively approved for exclusion from certain duties.