AAFA Supports GSP Footwear Bill Introduced in Congress

May 26, 2017 | WASHINGTON, D.C.

The American Apparel & Footwear Association expressed its support for adding certain footwear to the Generalized System of Preferences (GSP) program, as introduced on the floor of the U.S. House of Representatives last night. Under the proposal, footwear would be added to GSP for the first time since the program was enacted more than 40 years ago.

"AAFA strongly supports this new footwear legislation as it makes small but critical changes to products that are eligible for GSP status," stated Rick Helfenbein, president and CEO of the American Apparel & Footwear Association. "As with a similar AAFA-supported GSP initiative, overwhelmingly enacted by Congress two years ago, this approach carefully avoids impacting products that are made in the United States. If these footwear items are ultimately designated as GSP-eligible, companies will be able to use duty savings to support U.S. workers, to invest in product innovation, and have the ability to pass along savings to consumers.

"Thanks to Representatives Smith and Blumenauer for their leadership in proposing this much needed update to the GSP," noted Helfenbein. "These are small steps toward what ultimately can be a larger review of the GSP program, and the opportunity to update the 42-year-old trade program. In addition, we urge Congress to quickly move forward with the underlying GSP renewal legislation, which is scheduled to expire at the end of the year."

GSP was established by the Trade Act of 1974 and is the largest and oldest U.S. trade preference program, designed to provide opportunities to the world's poorest countries by eliminating duties on products imported to the U.S. By providing access to the U.S. economy, these countries are able to grow their economies while providing benefits to U.S. consumers, workers, and businesses. The GSP program provides duty-free access only for products that are not manufactured in the U.S. AAFA has been a strong supporter of duty-free treatment through the GSP program.