Bipartisan Letter Asks Ways and Means to Renew GSP, Reform CNLs

Twenty of Florida's 28 representatives, led by Democrat Rep. Debbie Wasserman Schultz and Republican Mario Díaz-Balart, are calling on the House Ways and Means Committee to reinstate the Generalized System of Preferences benefits program, which expired almost three years ago.

The letter, signed by a dozen Republicans and eight Democrats, didn't garner the signature of Rep. Greg Steube, a recent Republican addition to the committee from Florida, but did have support from Rep. Vern Buchanan, R-Fla., a longtime member of the committee.

In the letter, sent Nov 10, the members asked the committee to pass a long-term retroactive renewal as soon as possible.

"This expiration has imposed over $3 billion in extra tariffs, with Florida-based businesses bearing the weight of approximately $300 million of this burden. The impact on the floral industry, a vital component of Florida's economy and job market, has been particularly severe.

"To date, the Florida floral industry has paid over $66 million in tariffs, crippling U.S. companies that have borne these costs," they wrote. The letter also argued that the return to tariffs for GSP-eligible products punishes companies that tried to move production out of China to avoid Section 301 tariffs.

"Furthermore, we support modernization of outdated GSP rules, such as 'competitive need limitations' (CNLs), which can re-impose tariffs if imports from a GSP country rise, discouraging diversification of sourcing away from China," they wrote. They said the CNL rules would have resulted in an additional $88 million in tariffs if they, and GSP, had been in force.

In a news release announcing the letter, Wasserman Schultz said: "Renewing GSP is a win-win proposition for consumers, workers, and local businesses, especially in Florida. In addition to lowering operating costs and prices, preferential trade policies promise to continue lifting millions out of poverty and reducing China’s influence on U.S. supply chains. I’m proud to help lead the bipartisan consensus in support of these objectives.”

"The GSP program ... reduces our nation’s growing reliance on China by encouraging a much-needed shifting of supply chains out of China through nearshoring and reestablishing competitive trade relationships," Díaz-Balart said.

“We are grateful to the Florida Congressional Delegation for leading the charge to urge the Ways and Means Committee to reauthorize the Generalized System of Preferences,” said Rodrigo Leiva, president of the Florida Association of Floral Importers. “The floral industry is a vital economic engine in Florida, and the absence of GSP has resulted in a significant financial strain to our industry, stunting growth, and impeding job creation."