Chamber Report Underscores Benefits of GSP Trade Program

WASHINGTON, D.C.-The U.S. Chamber of Commerce today issued a report on the benefits to American consumers and companies of the U.S. Generalized System of Preferences (GSP) and urged Congress to extend the program beyond its Dec. 31 expiration.

"For more than three decades, GSP has boosted the competitiveness of American manufacturers and lowered the cost of consumer goods for American families," said John Murphy, Chamber vice president for international affairs. "The products coming in under GSP generally do not compete with U.S.-made goods in any significant way."

GSP extends duty-free treatment to selected imports. It promotes economic development in more than 130 developing countries by expanding their trade with the U.S. In 2005, U.S. imports under GSP surpassed $27 billion.

Among the report's findings:

* GSP keeps U.S. manufacturers and their suppliers competitive. In 2005, three quarters of U.S. imports using GSP were raw materials, parts and components, or machinery and equipment used by U.S. companies to manufacture goods in the United States for domestic consumption or for export.

* American families also benefit from GSP. Finished consumer goods sold by U.S. retailers accounted for 25% of GSP imports in 2005. Relatively inexpensive jewelry was the most significant item.

* GSP is particularly important to U.S. small businesses, many of whom rely on the program's duty savings to compete with much larger companies.

* GSP imports support U.S. jobs. Moving GSP imports from the docks to the retail shelves supported nearly 82,000 U.S. jobs in 2005, according to the Chamber's report.

"Congress should remember the Hippocratic Oath-first, do no harm-and extend GSP," added Murphy.

The U.S. Chamber is the world's largest business federation, representing more than 3 million businesses and organizations of every size, sector, and region.

www.uschamber.com

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