Walorski Introduces Bipartisan Legislation to Update GSP, Support Hoosier Manufacturers

Friday, December 10, 2021

Walorski Introduces Bipartisan Legislation to Update GSP, Support Hoosier Manufacturers

WASHINGTON, DC – U.S. Rep. Jackie Walorski (R-Ind.), a senior member of the House Ways and Means Committee, this week introduced bipartisan legislation, H.R. 6171 – the CNL Update Act, to update the Generalized System of Preferences’ (GSP) competitive need limitation (CNL) rules and provide additional guidance for the administration as it conducts country and product-specific reviews of GSP benefits.

“Northern Indiana is home to a robust manufacturing industry that benefits Americans across the country and beyond. Thanks to our incredible Hoosier workforce, we are one of the top manufacturing districts in the nation,” said Congresswoman Walorski. “GSP plays a key role in reducing costs for Hoosier job creators, but its expiration for almost a year has left manufacturers hanging. I urge Congress to immediately pass a long-term reauthorization of GSP, while also including improvements like the CNL Update Act, to reduce burdens on our job creators, strengthen trade relationships, and protect Hoosier manufacturing.”

Congresswoman Walorski introduced H.R. 6171 alongside Rep. Stephanie Murphy (D-Fla.), a fellow member of the House Ways and Means Committee. It has garnered the support of stakeholders including The Coalition for GSP.

“By helping restore GSP for non-sensitive imports, these commonsense changes will further GSP’s development goals, lower costs for American manufacturers and families, and increase the Administration’s leverage as it implements new GSP eligibility criteria,” said Coalition for GSP Executive Director Dan Anthony. “GSP can be a powerful economic development tool, both in GSP countries and at home. The CNL Update Act complements bipartisan efforts to reauthorize GSP in a manner that better promotes a race-to-the-top in trade. We urge Congress to include it any GSP renewal bill.”

BACKGROUND

The GSP program lowers costs for American businesses, workers, and consumers by reducing or eliminating duties on a range of products imported from developing countries. To be eligible, a product cannot exceed dollar and percentage thresholds, called competitive need limitations (CNLs). USTR may grant a CNL waiver under certain conditions, such as U.S. national security interests, no domestic production, or low total imports.

In 2018, Congresswoman Walorski authored provisions to modernize the Generalized System of Preferences (GSP) program, which were signed into law as part of broader legislation. She had previously introduced the H.R. 4068, the Competitive Need Limitations Modernization Ac to fix two issues in the GSP program that led to unnecessary costs and paperwork for American manufacturers.

Walorski represents the 2nd Congressional District of Indiana, serving as a member of the House Ways and Means Committee and the Ranking Member of the House Ethics Committee.

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