The American Apparel and Footwear Association (AAFA) has voiced its backing for the renewal of the Generalized System of Preferences (GSP) Reform Act, aiming to enhance the competitiveness of US companies while also fostering global economic development.

AAFA president and CEO Steve Lamar in a statement issued on April 15 stated that the Generalized System of Preferences (GSP) has consistently garnered bipartisan support, and the unprecedentedly lengthy hiatus has remained inexplicable and harmful to American businesses, workers, and beneficiary nations alike.

This prolonged lapse has inadvertently provided China with a substantial trade advantage, he mentioned.

‘This retroactive renewal is far more effective at making our trusted partners more competitive than misapplied tariffs will ever be. This GSP program is also helpful to mitigate the costs faced by our nation’s supply chains during this time of continuous disruption,’ AAFA president said.

Once renewed, this could significantly affect the cost and availability of everyday items such as summer travel luggage and fall school backpacks, the statement read.

In his statement, Lamar expressed special gratitude to Representative Adrian Smith for introducing this significant bill. The apparel and footwear industry urges Congress to swiftly pass the GSP Reform Act.

‘We were pleased to see several proposed reforms, including measures to update the competitive need limitation (CNL) mechanism and open a process to consider currently ineligible products. Such reforms are vital if GSP is to be properly equipped to help companies invest in supply chains as they diversify from China,’ AAFA vice president Beth Hughes said.

The GSP is the largest and trade preference program of the US. It is designed to support economic development in select developing countries by removing tariff barriers on qualifying products, while supporting worker rights, intellectual property protection, and the rule of law in these beneficiary countries, the statement said.

AAFA noted that historically, the GSP program has garnered bipartisan and bicameral support since its inception in 1974 as the program requires Congressional re-authorization.

The refunding of tariffs collected during prior gaps in the program’s operation has been common in previous renewal bills.