What happened: NPPC this week urged congressional lawmakers to renew the U.S. Generalized System of Preferences (GSP) program, which expired at the end of 2020. Testifying on behalf of NPPC, Randy Spronk, a Minnesota pork producer and NPPC past president, told the House Committee on Ways and Means Trade Subcommittee that pork producers support GSP because it helps developing countries grow their economies, climb out of poverty, and, eventually, become export markets for U.S. pork. The program has also been used as a trade enforcement tool, giving U.S. trade negotiators leverage to address market access issues.
Why it’s important: GSP provides duty-free treatment of goods exported to the United States from beneficiary developing countries. In turn, GSP-eligible countries are required to meet certain statutory criteria set by Congress, including market access for U.S. goods. Should countries fail to meet those requirements, the United States can withdraw GSP benefits.
In 2017, GSP was successfully used to obtain market access for U.S. pork producers in India, which at the time was the number one recipient of preferential GSP trade benefits, despite restricting or prohibiting the importation of many U.S. agricultural products, including pork. When Argentina was considered for the GSP program in 2018, the U.S. Department of Agriculture used that leverage to finalize an export certificate for U.S. pork with the South American country.
NPPC’s take: NPPC supports the renewal of GSP, as it is a valuable program that gives U.S. trade negotiators another tool to persuade countries to eliminate trade restrictions on U.S. products, including pork.
NPPC also supports adding to the program stronger enforcement mechanisms that can help prompt countries to meet their GSP obligations.
Click here to watch the full hearing.
