Unless Congress reaches a deal soon, the Generalized System of Preferences (GSP) program — which currently provides duty-free status to Ecuadorian roses — will expire at the end of the year.
Earlier this fall, fresh cut roses were added to the GSP. As a result of this SAF advocacy victory, floral industry businesses no longer had to pay a 6.8 percent tariff on Ecuadorian roses as of Nov. 1.
But now the entire GSP program — a trade preference program that provides opportunities for many of the world’s poorest countries to use trade to grow their economies — is set to expire on Dec. 31, 2020. SAF took the lead in advocating for the program’s renewal earlier this year during SAF’s Congressional Action Days. Specifically, SAF members called on Congress to pass legislation reauthorizing GSP, which supports the floral industry by containing costs and providing importers and retailers with greater price certainty.
As the end-of year expiration date looms, there are significant policy hurdles affecting the extension of the program. Democrats and Republicans have not reached an agreement on extending the program without changes — and it is possible the entire GSP program will lapse temporarily.
There are currently two competing extension proposals: one from Senate Finance Chairman Chuck Grassley (R-IA) to extend the program as-is for sixteen months, and another from Ways and Means Trade Subcommittee Chair Earl Blumenauer (D-Oregon) to extend the program for six months with changes to the GSP eligibility criteria. Democrats are seeking revisions to tighten worker rights and equal protection aspects of the program while Republicans are focused on a clean extension without changes to program eligibility criteria.
“GSP has traditionally garnered bipartisan support,” said Alice Gomez, SAF lobbyist. “But unless the two sides compromise, there won’t be a chance for tacking GSP renewal on to other funding legislation before Congress adjourns and the program expires. The middle ground could be to extend the program as-is for six months and let the new congress debate changes to eligibility criteria in 2021.”
SAF, as a supporter of the Coalition for GSP, will continue to make the case that Congress should renew this important program in a timely manner. Stay tuned to SAF Now for further updates and how you can advocate with your own members of Congress to encourage renewal of the program.
Katie Butler is the senior vice president of the Society of American Florists.
