SMALL U.S. IMPORTERS HURT BY GSP EXPIRATION

SMALL U.S. IMPORTERS HURT BY GSP EXPIRATION    The expiration of the Generalized System of Preferences on Sept. 30 meant that importers, which had been importing a variety of products from least developing countries duty free, had to start pay duties on these products.
   “It’s fair to say that the lapse of this program constituted a tax on many American small businesses who depend upon the GSP program to keep the costs of inputs to production low,” said Laura Baughman, executive director for the Washington-based Coalition for GSP.
   “What’s more, the on-again, off-again nature of the program is problematic, especially at this time of national crisis when we want to shore up the economies of our key allies, some of whom are developing nations eligible for the GSP program,” she said.
   Earlier in September, the coalition wrote to members of the House Ways and Means and Senate Finance Committees urging them to consider the GSP program in the waning days of this congressional session.
   “We need to ensure that GSP is included in an economic stimulus package,” Baughman said. “The de facto tax increase, coming as it has at this time of economic uncertainty, is a big problem. If Congress is looking for a program that would provide immediate benefits to smaller business who create jobs, GSP extension is it.”
   The prospects for GSP extension remain unclear as Congress debates economic stimulus packages and potentially moves forward with a compromise Trade Promotion Authority Bill. The Coalition for GSP considers either legislative avenue a vehicle for the trade program’s extension.
   “As the deadline nears for adjournment, the nervousness of companies who need GSP mounts,” Baughman said. “My phone is ringing with people wanting to know when and how GSP will be renewed.”