Washington – The House Ways & Means Committee marked up and passed several trade-related bills today, including legislation on the reauthorization and reform of the Generalized System of Preferences (GSP) program and a bill that would eliminate de minimis benefits for a broad set of imports.
Specifically, the committee passed H.R. 7986—“Generalized System Preferences Reform Act”—which would reauthorize the GSP program that offers developing countries the ability to export to the United States without duties on thousands of products that they would otherwise have been subjected to. The bill would direct the U.S. Trade Representative (USTR) to consider the extent to which a country restricts digital trade, including specific barriers related to digital trade.
Additionally, the committee passed H.R. 7979—the “End China’s De Minimis Abuse Act”—which would rescind de minimis benefits for products subject to Section 301 tariffs. A summary of the bill states that the bill “would immediately eliminate de minimis for more than half of all de minimis entries from China.”
The Computer & Communications Industry Association (CCIA) has been actively involved in advocating for digital trade rules that strengthen the global economy for over 50 years.
CCIA Vice President of Digital Trade Jonathan McHale expressed the organization's support for the reauthorization of the GSP program and the importance of addressing digital trade barriers. He stated, "We are pleased to see the Generalized System Preferences program reauthorized and amended to ensure that the benefits of this important program are offered to global partners that do not impose unjust or discriminatory digital trade barriers."
McHale also highlighted the significance of addressing digital trade barriers, especially in light of recent testimony from the Office of the U.S. Trade Representative. He emphasized the importance of swift passage of the bill in the full House and Senate.
Regarding the de minimis legislation, McHale mentioned, "CCIA is cautiously monitoring de minimis legislation as it moves through the Ways and Means Committee to the full House." He emphasized the current benefits of the de minimis regime for businesses of all sizes and the importance of any changes being done in a targeted manner to address specific harms.
The markup of these trade bills follows a recent oversight hearing for the Office of the U.S. Trade Representative, where questions were raised about defending U.S. digital products and services exports. The focus on digital trade barriers reflects the evolving landscape of international trade and the efforts to ensure fair and open trade practices in the digital space.
