The outdoor industry has been hit with $1.7 billion dollars in additional tariffs due to a lack of GSP renewal. OIA urges Congress to quickly pass this important legislation.
Wednesday, April 17, 2024 – Following the successful House markup of the Generalized System of Preferences (GSP) Reform Act (H.R. 7986), Outdoor Industry Association (OIA) extends its full support to this pivotal legislation introduced by House Ways & Means Trade Subcommittee Chairman Adrian Smith. OIA recognizes this bill as a significant endorsement of American values, protection for U.S. workers, and a boon for domestic companies. OIA emphasizes the urgent need for Congressional action on this bill to support the trillion-dollar outdoor recreation economy.
The GSP Reform Act is essential for the continued growth of the outdoor recreation industry and the ability of companies to grow jobs in the U.S. The bill not only seeks to retroactively renew GSP through 2030 but also proposes significant reforms to fortify the program. These reforms are crucial for the outdoor companies, modernizing the program to ensure key products remain in the program and encouraging further movement of supply chains out of China.
“The Generalized System of Preferences Reform Act (H.R. 7986) represents a significant endorsement of American values and workers, and U.S.-based companies. Since the expiration of the GSP in 2020, the outdoor industry has endured the burden of approximately $1.7 billion in additional tariffs, stifling innovation, job growth, and creating offshore manufacturing disruptions. OIA and its members applaud Congressmen Smith and the House Ways and Means Committee on advancing this critical legislation and urge Congress to swiftly pass the bill to ensure the vitality of the one trillion-dollar U.S. outdoor recreation economy. said Kent Ebersole, President, Outdoor Industry Association. “OIA looks forward to working with our champions in Congress and the Administration to advance this landmark bill.”
Additionally, the GSP Reform Act incorporates new criteria aimed at upholding international human rights standards and fostering adherence to U.S. values among beneficiary countries. By introducing these measures, the legislation ensures that the GSP program serves as a tool for promoting democracy, good governance, and anti-corruption practices while safeguarding the national security and foreign policy interests of the United States.
Included in the GSP Reform Act are updates to the Competitive Needs Limitation (CNL), which increases the dollar threshold and indexes that threshold to inflation, to improve the program’s usefulness to incentivize supply chain shifts out of China. CNL reform is crucial to the success of many outdoor businesses. In September of 2023, OIA Member Black Diamond testified before Congress in support of GSP and CNL reform. In Congressman Adrian Smith’s opening statement, he said, “We heard a concern from the outdoor product company Black Diamond, that outdated provisions on Competitive Needs Limitations could inhibit the usefulness of the GSP program to shift supply chains out of China. I am proud to say this bill includes much-needed reforms to GSP’s CNL provisions. Both Representatives Blake Moore (R-UT) and Suzan DelBene (D-WA) have been leaders in getting these important reforms included here today.”
The outdoor industry has long benefitted from the GSP program. GSP offers duty-free importation of goods from designated beneficiary countries, resulting in cost savings and a competitive edge for companies in the sector. Companies within the outdoor industry that utilize GSP can maintain quality and drive innovation in their products while fostering trade relations and growing U.S.-based jobs. GSP also indirectly promotes sustainable practices within supply chains, aligning with the industry’s commitment to environmental responsibility. However, with the lapse of the program in 2020, these benefits of the program have not been realized by the industry, and billions of dollars have been paid in duties, stifling innovation and hurting U.S. companies.
Outdoor Industry Association urges Congress to swiftly pass the GSP Reform Act, recognizing its critical role in revitalizing American values, promoting economic prosperity, and advancing the interests of U.S. workers and companies. This landmark legislation represents a pivotal moment in reaffirming America’s commitment to fair trade practices, sustainable development, and global leadership.
About the Outdoor Industry Association
Based in Boulder, Colo., with offices in Washington, D.C., Outdoor Industry Association (OIA) is a catalyst for meaningful change. A member-based collective, OIA is a passionate group of business leaders, climate experts, policymakers, and outdoor enthusiasts committed to sustainable economic growth and climate positivity while protecting – and growing access to – the benefits of the outdoors for everyone. For more than 30 years, OIA has catalyzed a thriving outdoor industry by supporting the success of every member company across four critically aligned areas: market research, sustainability, government affairs, and inclusive participation. OIA delivers success for its members through education, events, and business services in the form of solutions and strategies, consultation, collaboration, and opportunities for collective action. For more information, visit outdoorindustry.org
