Neal Says GSP Will Be Renewed Retroactively This Year
House Ways and Means Committee Chairman Richard Neal, D-Mass., told an online audience Feb. 9 during a Washington International Trade Association conference that the Generalized System of Preferences benefits program will be restored this year, and that the benefits will be retroactive. He added, “I think that for all of its past successes, and I have been a supporter, it needs to be updated to keep us in line with progress as it relates to trade policy.”
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Trade Subcommittee Chairman Earl Blumenauer, D-Ore., introduced a rewrite of GSP late last year that would evaluate whether countries covered by GSP have established or are making continual progress toward establishing “the rule of law, political pluralism, the right to due process, a fair trial and equal protection under the law,” and whether those countries are working to “reduce poverty, increase the availability of health care and educational opportunities,” among other goals, including combating corruption. It also would predicate eligibility on whether a country effectively enforces its environmental laws and regulations, and is fulfilling its international environmental obligations, including those related to public health (see 2012080049).
In terms of new initiatives, Neal said he's looking forward to using “our trade tools and policies to help counteract the effects of climate change.” He also said he's hopeful that negotiations with the United Kingdom and Kenya can be completed in 2021, for new trade deals. “I'll leave it to you who are trade experts, if you can get past the chlorinated chicken issue. It's ... kind of a challenge, but I'm looking forward to it.”
On trade compliance, Neal also addressed the enforcement of bans on goods made with forced labor. “I, like most of you, are troubled by China's forcible assimilation of Muslim and other religious minority populations, including the use of concentration camps and forced labor. Forced labor places negative pressure on the rights of workers around the world, and companies that abide by high standards are also much affected. I'm committed to working with colleagues in Congress, the Biden administration, civil society, the private sector, and our trading partners to create a plan for more rigorous enforcement of forced labor laws.”
He later elaborated on how tackling forced labor isn't just a matter of withhold release orders. “The conditions in [China's] Xinjiang [region], coupled with the nature of global supply chains, highlights the need to work with our allies to come up with a global solution,” he said. “It's imperative that every country does their part to confront China, and ensure their countries did not become vessels for products made with forced labor.”
Neal said enforcement of Canada's and Mexico's commitments under USMCA, particularly the use of the rapid response mechanism over labor abuses in Mexico, will be a priority this year. “It's not good enough, as you know, just to create new tools and leave them on the shelf. We need to use those tools,” he said.