House Passes Retroactive GSP Bill
September 8, 2011
On September 7, 2011, the U.S. House of Representatives passed H.R. 2832, a bill to reauthorize the Generalized System of Preferences (GSP), in a unanimous voice vote. GSP lapsed at the end of 2010 after the Senate failed to pass a reauthorization bill because of disputes regarding Trade Adjustment Assistance and Free Trade Agreements with South Korea, Colombia, and Panama. H.R. 2832 extends GSP through July 31, 2013, and applies retroactively for articles entered after December 31, 2010, but before the date of renewal. In order to pay for GSP renewal, H.R. 2832 increases the MPF on formal entries by 65 percent.
The bill will now move to the Senate, which is currently expected to amend the measure by adding an amendment to renew Trade Adjustment Assistance (TAA). Congressional action on GSP and TAA may pave the way for President Obama to send implementing legislation to Congress for the South Korea, Colombia, and Panama Free Trade Agreements.