GSP Renewal At Risk: You Can Help

Congress allowed the Generalized System of Preferences (GSP), the longest running U.S. trade preference program, to expire at the end of 2020. This failure to act has resulted in substantial tariff costs for U.S. companies—including RV manufacturers and suppliers—during a time when businesses are facing historic inflation and price increases.

GSP SAVES THE RV INDUSTRY $1.5 MILLION EACH MONTH

RV Industry Association members understand the value of GSP. In 2019, the RV Industry Association successfully petitioned the Office of the United States Trade Representative to redesignate certain lauan plywood from Indonesia falling within tariff line 4412.31.4155, which we created for this purpose in 2018. We could not have achieved this momentous victory without help from RV Industry Association members and our tireless Congressional champions who supported our petition. That decision saved the RV industry nearly $1.5 million a month, as that plywood was no longer subject to the previous eight percent tariff. Unfortunately, since GSP expired, the industry has been forced to pay the eight percent duty on lauan plywood and will continue to do so until the program is renewed.

STATE OF PLAY

Both the House and Senate have included GSP renewal provisions as part of their massive China competition packages (the House’s COMPETES Act and Senate’s US Innovation and Competition Act) that include the CHIPS Act, a $52 billion to boost production of semiconductors in the United States. The House package reauthorizes GSP through the end of 2024. This is two years less than the Senate version, which the RV Industry Association supports. 

Both bills add new program eligibility criteria aimed at promoting better governance and more attention to labor, environmental, and gender equity concerns, although they differ in details, with the House legislation containing stricter criteria.

Currently, a 107-member Conference Committee is attempting to iron out the differences between the two pieces of legislation to arrive at a final bill that can be passed and sent to President Biden. Due to the impending August recess, Congressional leaders are now talking about slimming down the package, potentially to just the CHIPS Act, so something would be passed before recess. While other broadly supported provisions may also be included, there is a risk of GSP dropping out of the final package. This package is the best bet for renewing the program, as when Congress returns in the fall it will be with an eye towards the midterms—meaning it will be much harder if not impossible for both sides to reach a consensus.

HOW TO GET INVOLVED

You can help. These conversations and decisions are happening now. If your company relies on GSP, you can reach out to your members of Congress using RVACT. You can also reach out directly to Samantha Rocci on our Government Affairs team if you would like to get more involved—such as testifying when opportunities present themselves, or sending personalized letters to key leadership and decisionmakers.

TAKE ACTION

For more information, contact Samantha Rocci at srocci@rvia.org.