Peoria Standard

Washington, D.C. – The House Ways and Means Committee has made progress by advancing the Generalized System of Preferences (GSP) Reform Act, which incorporates Congressman Darin LaHood’s Digital Trade for Development Act. This legislation aims to modernize the GSP program and address digital trade barriers while countering China's economic influence in the developing world.

During the Committee debate, Rep. Darin LaHood expressed his appreciation for the attention given to renewing and updating the Generalized System of Preferences. He also recognized Trade Subcommittee Chairman Smith for his efforts in advocating for trade preference programs that support American manufacturing and global leadership.

Highlighting the importance of the Digital Trade for Development Act, Rep. LaHood emphasized the need to address restrictive digital trade policies, particularly in light of China's ambitions to challenge American leadership in developing countries. He stressed the significance of reforming the GSP to align with sound digital trade policies, safeguarding American interests and businesses.

The Generalized System of Preferences, established in the 1970s to promote economic development in developing countries through trade, provides duty-free treatment for certain U.S. imports. The latest renewal legislation extends the GSP program through 2030, with a focus on incorporating digital trade considerations to combat harmful practices observed in various countries.

The Digital Trade for Development Act, a component of the GSP Reform Act, introduces new criteria for countries seeking beneficiary status under the program. By addressing digital trade barriers and discouraging restrictive policies, the legislation aims to protect American values, jobs, and exports while advancing strategic interests worldwide.

Overall, the inclusion of the Digital Trade for Development Act in the GSP Reform Act signifies a proactive approach to modernize trade policies, promote economic growth, and mitigate the adverse effects of restrictive digital trade measures on American businesses and global markets.