Rep. Miller Joins Ways and Means Trade Subcommittee on Reforming the GSP
WASHINGTON, D.C. – Yesterday, Congresswoman Carol Miller (R-WV) joined the Ways and Means Trade Subcommittee hearing on reforming the Generalized System of Preferences (GSP) to safeguard U.S. supply chains and combat China’s influence on the global stage. Congresswoman Miller questioned Ed Gresser, the Vice President and Director for Trade and Global Markets at Progressive Policy Institute, on the GSP program in the United States.
Click here to watch.
Congresswoman Miller on the importance of the GSP program to the United States and international trade:
GSP is one of the most necessary trade programs that the United States has developed, and it is essential for providing fairly priced imports for American producers and consumers, as well as helping developing countries grow their economies to one day stand on their own. The Biden Administration’s lack of focus on trade has severely weakened our standing amongst once key trading partners, therefore cracking the door open for the Chinese Communist Party to take our place and exert their dangerous ideology.
It is essential that we ensure the GSP program is working properly to accomplish our goals and not undermine American producers of certain products. We must be careful to not overburden the program with more government red tape. Businesses just want certainty, and we must work to ensure as much of it as possible, so they [companies] can make safe investments and can trust their government not to pull the rug out from under them.
Unnecessary oversight and continued uncertainty will have the unfortunate consequence of raising prices for American consumers.
Congresswoman Miller questioned Mr. Gresser on the impact of GSP on workers in developing countries:
“Having worked under both the Trump and Obama Administrations, I am very interested in hearing your insights on the impact of GSP on the lives of workers in developing countries and the need for certainty when companies are making investment decisions,” asked Congresswoman Miller.
"The impact somewhat differs in every country but it’s generally quite positive. Program like GSP encourages some investment and some production in smaller and poorer countries. To the extent it does that, it draws workers out of informal sector and rural work into more jobs that are more likely to be wage paying, more likely to be covered by social security, limited hours, and workplace health and safety laws.
It does give you a lot of opportunities both to create, in general, a better employment environment and to solve really serious and difficult questions. I’d also say finally that the eligibility criteria are important and it’s important to enforce them, but they’re not an alloyed good," said Mr. Gresser.
Congresswoman Miller continued questioning Mr. Gresser on the impact reporting requirements would have on the GSP program:
“One of the great effects of GSP is the impact on the lives of the people that are employed in the developing countries, often women. I’ve seen firsthand the impact of these investments in countries that can have workers who are women have fewer options. I’d like to submit for the record some data that I’ve seen on products like sweaters that are overwhelmingly produced in China, that should be included in GSP. Women tend to make these products and I’m very supportive, of pro women GSP.Can you describe how more extensive reporting requirements could make the GSP program less effective?” asked Congresswoman Miller.
It is important that Administration’s provide a public record of their decisions and rationales. The number of people who work on GSP full time is quite small. The more time they’re spending on product eligibility petitions and enforcement and on explaining the benefits to countries, the more the program is going to succeed. The more time they’re spending on writing reports, takes a bit of your time away from the day to day work that they need to be doing,” said Mr. Gresser.
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