The House Ways & Means Committee is set to review a slate of bills addressing trade with China, among which is a bill to renew the Generalized System of Preferences ("GSP")—which expired in 2020—until 2030. The "Generalized System of Preferences Reform Act" proposes the "largest reforms to the GSP program since inception," including permanently banning China from eligibility for GSP treatment. The bill would also update other product eligibility criteria, increasing the rule of origin ("ROO") requirement from 35 to 50 percent, updating the competitive needs limitations ("CNLs") by increasing the threshold from $215 million to $500 million, and directing the International Trade Commission ("ITC") to conduct a new economic analysis to identify possible changes to products eligible for duty-free treatment as part of the GSP program. As it stands, the bill is currently awaiting a vote in the House.
Read the text of the bill here.
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