Florida Congressional Delegation: Renewing the Generalized System of Preferences will boost the state’s economy and lower consumer prices

Florida Congressional Delegation: Renewing the Generalized System of Preferences will boost the state’s economy and lower consumer prices

Members of the Florida delegation led by U.S Answers Mario Diaz BalartR-Florida, W Debbie Wasserman SchultzD-Florida, was recently recalled US House of Representatives Committee on Ways and Means “To boost the economy and reduce consumer costs by developing legislation to reauthorize government Generalized system of preferences (GSP) which expired nearly three years ago.

Diaz-Balart and Wasserman Schultz led the message to the United States Rep. Jason Smiththe Republican from Missouri, who chairs the committee, and the United States Representative Richard NealD-Massachusetts, who leads Democrats on this issue.

we Representatives Aaron BeanR-Florida, Gus BilirakisR-Florida, Vern BuchananR-Florida, Cathy CastorD-Florida, Sheila Chervilos-McCormickD-Florida, Neil DunnR-Florida, Louis FranklD-Florida, Scott FranklinR-Florida, Maxwell FrostD-Florida, Carlos JimenezR-Florida, Laurel LeeR-Florida, Brian MastR-Florida, Jared MoskowitzD-Florida, John RutherfordR-Florida, maria salazar, R-Florida, Darren SotoD-Florida, Daniel WebsterR-Florida, W Frederica WilsonD-Florida, signed the letter.

“I am proud to co-lead this bipartisan effort to support the retroactive renewal of the Generalized System of Preferences (GSP) program. The GSP, a cornerstone of American trade policy for more than 45 years, reduces our country’s increasing dependence on China by Encouraging a much-needed transformation of supply chains outside of China by bringing closer and re-establishing competitive trade relationships. The GSP revamp benefits American households and businesses across the country, including Florida, by reducing tariffs on global imports and thus helping American manufacturers and importers Maintain their competitiveness in international markets. Historically, South Florida has benefited greatly from the international trade industry, bringing jobs to our coastal cities and the heart of our state. “By reauthorizing GSP, we will revitalize our communities, strengthen Our economy, and confronting China’s influence in our hemisphere.”

“Renewing GSP is a win-win proposition for consumers, workers and local businesses, especially in Florida,” Wasserman Schultz said. “In addition to lowering operating costs and prices, preferential trade policies promise to continue lifting millions out of poverty and reduce China’s influence over American supply chains. I am proud to help lead bipartisan consensus in support of these goals.

“We are grateful to Florida’s congressional delegation for leading the charge in urging the Ways and Means Committee to reauthorize GSP,” said Congressional Chairman Rodrigo Leyva. Florida Florist Importers Association. “The flower industry is a vital economic engine in Florida, and the absence of GSP has placed significant financial pressure on our industry, hindering growth, and hindering job creation. Revamping GSP is not just about tariffs; it is about strengthening global relationships and securing The role of industry in supporting the American economy.

Wasserman Schultz’s office noted that the case affected Florida.

“The extended delay in GSP licensing has resulted in higher tariffs on imports from developing countries, and increased procurement costs for businesses in Florida’s trade-intensive economy. Over $3 billion in additional tariffs were paid, with businesses representing Florida nearly $300 million.Wasserman Schultz’s office noted that while companies have done everything they can to prevent prices from rising, many have warned that higher tariffs are not sustainable.

Message below:

On behalf of our constituents and Florida businesses, we urge the Ways and Means Committee to adopt and advance legislation to reauthorize the Generalized System of Preferences (GSP). We can Commerce Subcommittee Chairman Adrian SmithUNCTAD’s leadership on this issue, as demonstrated by the recent hearing on this topic, generated significant interest in resuming this essential programme.

The GSP program, a cornerstone of US trade policy for more than 45 years, has played a pivotal role in promoting economic growth and development in low- and middle-income countries while benefiting American consumers, businesses, and workers. The strategic waiver of US tariffs on nearly 3,400 products from 120 countries has stimulated increased trade, promoted global development, and strengthened the US economy. This program is a testament to the power of trade in strengthening foreign relations and enhancing our country’s economic prosperity.

Unfortunately, the GSP license expired on December 31, 2020, placing significant financial pressure on US companies across the country. This expiration imposed more than $3 billion in additional tariffs, with Florida-based companies bearing the brunt of about $300 million. The impact on the flower industry, a vital component of Florida’s economy and job market, has been particularly severe. Importing flowers supports more than 6,000 jobs in South Florida and more than 200,000 jobs across the United States, covering various sectors and industries. Furthermore, approximately 90% of the flowers consumed in the United States pass through Miami International Airport, the Port of Miami, and Port Everglades in South Florida.

To date, Florida’s flower industry has paid more than $66 million in tariffs, crippling the U.S. companies bearing the costs. The lack of GSP renewal has halted business expansion, hindered job creation, and prevented vital investments in operations and infrastructure. The extended expiration period – nearly three years – has left this financial burden unresolved.

While Florida continues to bear the brunt of this disruption, the ripple effects of inaction would hurt consumers across our country and harm employment prospects in Latin America and the Caribbean, which is a major driver of migration.

Moreover, the expiration of GSP benefits has unintended consequences, especially with regard to China. The imposition of Section 301 tariffs on Chinese products has forced many American companies to explore alternative suppliers. However, the expiration of GSP benefits now exposes most of these products to higher tariffs for GSP countries. And in Florida, a staggering 99% of GSP imports would face Section 301 tariffs if imported from China, further exacerbating the tariff burden on our industry.

Reauthorization of the GSP program will have a significant positive impact on various other sectors of the US economy, including:

· Travel goods, handbags, etc. ($133 million): Reducing tariffs through GSP benefits will help companies in this sector remain competitive in the global market.

· Plywood, veneered panels, etc. ($20 million): GSP relicensing will reduce costs and promote economic growth in the import and distribution of these products.

· Aluminum bars, bars and sections ($6.3 million): Revamping the GSP will encourage investment, expansion and job creation in the industry.

· Precious Metal Jewelry and Spare Parts ($4.0 million): Tariff reduction through GSP benefits will support manufacturers and retailers in the precious metal jewelry sector.

Given these compelling reasons, we respectfully urge the House Ways and Means Committee to pass long-term retroactive GSP legislation as soon as possible. The uncertainty surrounding GSP renewal inhibits strategic planning for companies hesitant to reconfigure their supply chains, especially in light of the program’s extended expiration date. A full retroactive reauthorization would return the $300 million (and growing) in tariffs paid on imports to Florida.

Moreover, we support modernizing outdated GSP rules, such as “competitive needs caps,” which could reimpose tariffs if imports from a GSP country rise, discouraging sourcing diversification away from China. These rules also reduce incentives for countries to meet eligibility criteria and impose real costs. While GSP has expired, imports to Florida face up to $88 million in non-refundable tariffs due to current CNL rules.

We hope you share our belief that reauthorization of the GSP program is critical to Florida’s various industries and the broader American economy. It will provide critical relief to businesses, support job creation, and boost economic growth. We look forward to working with you to reduce costs and strengthen American businesses while reducing global poverty and deepening our relationships with key trading partners.

Kevin Derby
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