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OIA Applauds GSP Reform Act Passing House Committee

Outdoor Industry Association (OIA) said Wednesday it applauds the successful House markup of the Generalized System of Preferences (GSP) Reform Act (H.R. 7986), legislation introduced by House Ways and Means Trade Subcommittee Chairman Adrian Smith.

The GSP Reform Act is essential for the continued growth of the outdoor recreation industry and the ability of companies to grow jobs in the U.S, the organization said in a release. The bill not only seeks to retroactively renew GSP through 2030 but also proposes significant reforms to fortify the program. These reforms are crucial for the outdoor companies, modernizing the program to ensure key products remain in the program and encouraging further movement of supply chains out of China.

“The Generalized System of Preferences Reform Act (H.R. 7986) represents a significant endorsement of American values and workers, and U.S.-based companies. Since the expiration of the GSP in 2020, the outdoor industry has endured the burden of approximately $1.7 billion in additional tariffs, stifling innovation, job growth, and creating offshore manufacturing disruptions. OIA and its members applaud Congressman Smith and the House Ways and Means Committee on advancing this critical legislation and urge Congress to swiftly pass the bill to ensure the vitality of the one trillion-dollar U.S. outdoor recreation economy,” said Kent Ebersole, president, Outdoor Industry Association. “OIA looks forward to working with our champions in Congress and the Administration to advance this landmark bill.”

Additionally, the GSP Reform Act incorporates new criteria aimed at upholding international human rights standards and fostering adherence to U.S. values among beneficiary countries. By introducing these measures, the legislation ensures that the GSP program serves as a tool for promoting democracy, good governance and anti-corruption practices while safeguarding the national security and foreign policy interests of the United States.

Included in the GSP Reform Act are updates to the Competitive Needs Limitation (CNL), which increases the dollar threshold and indexes that threshold to inflation, to improve the program’s usefulness to incentivize supply chain shifts out of China. CNL reform is crucial to the success of many outdoor businesses, OIA said.

In September of 2023, OIA member Black Diamond testified before Congress in support of GSP and CNL reform. In Smith’s opening statement, he said, “We heard a concern from the outdoor product company Black Diamond, that outdated provisions on Competitive Needs Limitations could inhibit the usefulness of the GSP program to shift supply chains out of China. I am proud to say this bill includes much-needed reforms to GSP’s CNL provisions. Both Representatives Black Moore (R-UT) and Suzan DelBene (D-WA) have been leaders in getting these important reforms included here today.”

Read OIA’s full statement here.

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