The U.S. Generalized System of Preferences (GSP) expired in 2020 and provided duty-free treatment of goods exported to the United States from beneficiary developing countries. Randy Spronk, a Minnesota pork producer and the National Pork Producers Council’s (NPPC) past president, testified before the U.S. House Committee on Ways and Means’ Subcommittee on Trade as part of its hearing on “Reforming the Generalized System of Preferences to Safeguard U.S. Supply Chains and Combat China.”
NPPC supports the objective of the GSP program to offer opportunities for many of the world’s poorest countries to use trade to grow their economies and climb out of
poverty. NPPC believes promoting the economic growth and development of GSP recipient countries is a good business proposition, because increased income and buying power in those markets will create future export opportunities for U.S. pork producers.
“U.S. pork producers support the renewal of GSP, a valuable program that will give U.S. trade negotiators another tool to persuade countries to eliminate trade restrictions on U.S. products,” Spronk said. “Further, a renewal of GSP should include stronger enforcement mechanisms that provide U.S. trade negotiators the tools to ensure countries are meeting their obligations.”
In the past, the U.S. pork industry has utilized GSP to gain market access to countries, including Argentina and India, NPPC said in a release.
Expansion of export markets is crucial to the continued success of the U.S. pork industry, which shipped nearly $7.68 billion of pork to more than 100 foreign destinations in 2022. Those exports supported approximately 155,000 U.S. jobs, added $14.5 billion to the U.S. economy and equated to approximately $61, or 25 percent, in value for each hog marketed in 2022.
NPPC also urges Congress to consider adding stronger enforcement mechanisms in the GSP program to ensure that recipient countries provide equitable and reasonable access to their markets. A mechanism that more quickly responds to unjustified barriers imposed by GSP recipient countries is welcome, NPPC wrote.
“We believe promoting the economic growth and development of GSP recipient countries is a good business proposition because increased income and buying power in those markets will create future export opportunities for U.S. pork producers,” Spronk said.
Randy Spronk’s full testimony can be found here.
