On May 20, 2021, Senate Finance Committee ranking member Mike Crapo (R-ID) introduced amendments to the Trade Act of 2021. The amendments include language renewing the Generalized System of Preferences (GSP) and Miscellaneous Tariff Bill (MTB) as well as provision to renew the Section 301 product exclusion process. Notably, the amendments seek renewal of the GSP and MTB in the same fashion as Senate Finance Committee Chairman Ron Wyden’s legislation, the Trade Preferences and American Manufacturing Competitiveness Act of 2021.
Key elements of the amendments include:
- Bolster efforts to prohibit goods made with forced labor from reaching the United States by strengthening Customs and Border Protection (CBP) enforcement efforts and expanding the Seafood Import Monitoring Program (SIMP).
- Modernize trade enforcement tools provided to U.S. Trade Representative (USTR) to address anti-competitive digital trade and censorship practices like China’s Great Firewall, including requiring USTR to identify trading partners that disrupt digital trade; allowing for the investigation of unreasonable digital trade measures detrimental to Americans; and expedited review of discriminatory digital trade proposals.
- Review of trade in essential supplies, including the sources of imports and an analysis of any vulnerabilities, as well as additional tools for businesses in the United States seeking reliable suppliers.
- Strengthen oversight over U.S. trade policy by providing an Inspector General to USTR and by ensuring the application of Section 301 tariffs related to China are calibrated to provide leverage, while ensuring U.S. competitiveness and manufacturing.
- Reauthorization of the Miscellaneous Tariff Bill (MTB) and an improved Generalized System of Preferences (GSP) that will promote human rights, the environment, women’s economic empowerment, the rule of law and digital trade.
The full text of the legislation is available here.
A full analysis of American Innovation and Competition Act an Trade Act of 2021 is available here.
For more information on the Generalized System of Preferences or Miscellaneous Tariff Bill please contact our team and see previous posts below.