Revival of US GSP seen this year
WASHINGTON – The revival of the United States’ Generalized Scheme of Preferences (GSP) will likely happen this year, possibly even before the US presidential elections in November.
According to Philippine Ambassador to the US Jose Manuel Romualdez, the bill to renew the GSP would likely hurdle the US Congress before the end of the year.
“It’s already been filed...We’re confident that it’s going to be passed,” Romualdez told visiting journalists who are part of the US government’s inaugural Friends, Partners, Allies Program.
In a briefing at the Philippine embassy in Washington on Thursday (Manila time), Romualdez said that based on his discussions with lawmakers, there is already a move from the US Congress to approve it.
“We’re not the only ones that are asking for this. There are several other countries that have been working with us or working with (the US) to try to push for the approval of the GSP to renew it since it lapsed in 2020,” Romualdez said.
The GSP is the largest and oldest US trade preference program, which was established by the Trade Act of 1974 and has since been renewed periodically by the US Congress.
It eliminates duties on thousands of products when imported from one of 119 designated beneficiary countries and territories, according to the Office of the United States Trade Representative.
For the Philippines, the GSP allowed the duty-free entry of some 3,500 to 5,000 locally made products into the vast US market – from agricultural goods to electronics. The Philippines’ eligibility expired on Dec. 31, 2020.
Romualdez, however, noted that the GSP would benefit not just the Philippines but even some US manufacturing companies in the country.
“We were talking about leather goods, for instance. These are leather items that are being done in the Philippines by American companies,” he said.
“In fact, it was these American companies and the American Chamber of Commerce in the Philippines that have been asking us to lobby for the renewal of the GSP,” Romualdez said.