Mr. President, I rise today to introduce legislation that will reauthorize a vital trade and development program--the Generalized System of Preferences (GSP). This is a program I have worked to…
Mr. President, I rise today to introduce legislation that will reauthorize a vital trade and development program--the Generalized System of Preferences (GSP). This is a program I have worked to reauthorize in the past, and I think it is a vital program for both developing countries and the American economy. As someone who frequently works to assist those who face the direst of circumstances in the poor countries of Sub-Saharan Africa, I feel that we must reauthorize this program as a key component of our efforts there.
The GSP program is an effort of the United States and 19 other industrialized countries to aid developing countries through increased market access, which in turn fosters industrial development and enhanced opportunities for prosperity in some of the least-advantaged countries in the world. This program allows a specified list of developing countries, from the Asian Continent to Sub-Saharan Africa to Latin America, to export certain products duty-free to the U.S. market. A beneficiary country's GSP treatment is contingent upon that country's commitment to securing intellectual property rights and to protecting the rights of workers. In this way, the GSP program promotes the development of sound practices and institutions in those countries with which we are engaged in trade and thus fulfills some important objectives of U.S. trade policy. In sum, the GSP program promotes self- sustaining production development in developing countries--not dependence on foreign aid--and also encourages respect for human dignity and property.
While originally developed as a trade program to aid developing countries, GSP over the past 32 years has become an important component of the U.S. economy. American consumers enjoy lower prices on diverse products from oil to flashlights to broomhandles to cheese. Furthermore, numerous American small businesses retain their competitive advantage from the duty-free treatment of essential inputs, such as electrical equipment and automotive parts. American small businesses need every cost-cutting edge available to them in order to continue to create jobs and value. I first took an interest in the reauthorization of this program when a small business in Oklahoma that used GSP-covered drilling components to support domestic energy enhancement contacted my office and explained how failure to reauthorize GSP would seriously affect his business. After which, upon understanding how much this program also assists those in developing countries, its reauthorization became a priority for me. Very clearly, although designed to make other less-advantaged countries more competitive, GSP has contributed to our continued competitiveness here in the United States.
Workers, consumers, and businesses in nearly 120 countries including our own will benefit from the continuation of this program, which affects the price of over 5,600 finished and unfinished goods. Therefore, I ask that you join me in reauthorizing the Generalized System of Preferences.