Trump Announcement on Trade Saves Industry Millions
Today’s action is an expansion of the Generalized System of Preferences (GSP), a trade preference program that promotes sourcing products in certain developing countries.
President Trump today issued a proclamation that gives the outdoor industry a major victory and will help lower costs for manufacturers of backpacks, duffel bags and other travel goods.
Today’s action is an expansion of the Generalized System of Preferences (GSP), a trade preference program that promotes sourcing products in certain developing countries, and will now include a broad list of packs, bags and travel goods from eligible GSP countries such as Thailand, Indonesia, Sri Lanka and the Philippines.
“Outdoor Industry Association (OIA) applauds the U.S.Trade Representative’s (USTR) decision to expand duty-free benefits to all GSP countries for certain backpacks, sports and travel bags,” said Alex Boian, OIA’s vice president for government affairs. “These products are often necessary gear for Americans to enjoy the outdoors and are an integral part of the business for many outdoor companies. By eliminating import taxes ranging from 4 to 20 percent, this initiative will help lower costs, fuel innovation, and create American jobs.”
OIA was instrumental in getting the GSP Update Act, legislation to make certain packs and travel goods eligible for GSP, passed by Congress in 2015, but upon implementation, the Obama administration limited the applicability of eligible products to a limited group of GSP countries. OIA submitted multiple petitions to expand country eligibility to align with Congressional intent, but the decision was left to the incoming administration. With today’s announcement by the president, an expanded list of eligible products will now enter the U.S. duty-free as of this Saturday, July 1, 2017, if they are sourced from any GSP country.
You can learn more about the GSP program here.