A Florida congressman is going to bat for the American travel goods industry by opening new opportunities in Asia, namely in the Philippines, Indonesia and Thailand, and making some travel goods as duty-free.
When the Generalized System of Preferences (GSP) program -- which provides commercial opportunities to developing countries -- was launched in 1974, travel goods were exempted. Under Ander Crenshaws bill, companies could petition the Office of the U.S. Trade Representative to request items be added to the GSP program.
Cresnhaw is teaming up with U.S. Sen. Roy Blunt, R-Mo., and U.S. Rep. Adrian Smith, R-Neb., to propose the legislation. Back in 2013, Crenshaw and Smith filed similar legislation.
In these tough economic times, Congress must work to promote economic growth and job creation, Crenshaw said on Tuesday. This bill accomplishes that goal for the travel goods industry in Florida, Missouri, Nebraska, and across the nation. Moreover, the GSP Update Act is an opportunity to enhance a successful global development program for our partners and allies and in so doing strengthen our national security in key world regions.
Upon passage, travel goods, such as the purses, briefcases, and backpacks, could be considered for approval as duty-free products by the U.S. Trade representative under the Generalized System of Preferences (GSP) Program, Crenshaw added. The GSP program is a long-successful global development program for our critical partners and allies. Thats a win-win for companies like Coach, in Jacksonville, Florida, as well as our national security strategy in countries around the globe. The bill would give the travel goods industry viable market alternatives to China which is not a GSP country. American businesses need tools to help them move forward, and I strongly encourage my House colleagues to support me in an effort to strengthen opportunities for this sector of our economy.
Since the GSP program expired on July 31, 2013, GSP-eligible companies in Missouri and nationwide have paid more than $1 billion in higher taxes, Blunt said. Im pleased to reintroduce this important bipartisan bill to help eliminate import taxes on certain U.S. products and travel goods, and I thank my colleagues in the House and Senate for their support as we work to give these companies more opportunities to grow and create jobs for middle-class Americans.
Modernizing trade opportunities for U.S. retailers boosts economic growth and supports American jobs in an increasingly globalized economy, Smith said. This legislation is a step in the right direction to updating our trade policy to help level the playing field for nonimport sensitive products."
As Crenshaw noted, Coach, which has some corporate operations in Jacksonville, is clearly behind his bill.
"Coach supports the efforts of Congressmen Crenshaw and Smith in making a positive change to U.S. trade policy through the GSP Update Act, said Angus McRae, the executive vice president of operations for Coach. This important initiative seeks to bring the GSP program in line with the modern realities of our industry. The GSP Update Act will open new and much-needed sourcing opportunities, promote our competitiveness and benefit our employees in Jacksonville and across the United States."
Reach Kevin Derby at kderby@sunshinestatenews.com or follow him on Twitter: @KevinDerbySSN
