A bipartisan bill offered on Dec. 1 by U.S. Rep. Blake Moore (R-UT) would modernize the Generalized System of Preferences (GSP) program, which allows the United States to foster better trade relationships with the world’s most developing countries in efforts to reduce their reliance on foreign aid.
More recently, the GSP has been a critical tool to move production out of China and into more secure environments, though the program’s outdated rules limit its potential and create barriers for U.S. trade and foreign policy goals, according to the congressman.
“This legislation will give Utah companies the flexibility they need to diversify their supply chains away from China and towards more reliable trade partners around the world,” said Rep. Moore, who sponsored the CNL Update Act of 2023, H.R. 6555, with original cosponsor U.S. Rep. Suzan DelBene (D-WA).
If enacted, H.R. 6555 would modernize the GSP program by increasing the topline threshold levels for businesses — known as Competitive Need Limitations (CNLs) — to $600 million, according to a bill summary provided by the lawmakers.
Additionally, H.R. 6555 would introduce a 5 percent annual growth provision for the GSP program, offering a structured, predictable growth trajectory, the summary says, noting that such changes would improve how companies access key products, shift global value chains outside China, enhance U.S. national security, and protect domestic industries.
“Several economic sectors in Utah, including the outdoor recreation industry, rely on an effective and modernized Generalized System of Preferences program to do business,” said Rep. Moore. “But Congress has not considered a significant overhaul of CNLs in the GSP program since 1996, which has led to outdated trade policies that impede production, limit growth, and harm U.S. economic and national security interests.”
Rep. DelBene agreed that aspects of the GSP program are outdated, and said H.R. 6555 would update the program, “helping create more jobs at home, strengthen American leadership abroad, and reduce our dependency on China.”
The measure is supported by numerous entities, including the World Trade Center Utah, BioUtah, the Outdoor Industry Association, the RV Industry Association, the Utah Mining Association, the Association of Floral Importers of Florida, and the Coalition for GSP, among others.