Peoria Standard

Washington, D.C. - Congressman Darin LaHood (IL-16) has reintroduced the Digital Trade for Development Act, a forward-looking piece of legislation aimed at modernizing the Generalized System of Preferences (GSP), promoting global economic growth, and combating restrictive digital trade policies. The bill, which seeks to update and reform the GSP to support sound digital trade policies, has garnered support from various stakeholders who recognize the importance of digital trade in today's economy.

In his statement, Rep. LaHood emphasized the significance of digital trade as an engine for economic success, both in the United States and around the world. He stated, "By modernizing the GSP, this bill can support open digital trade policies that expand economic growth in developing countries and advance American interests globally."

The GSP, initially created by Congress in the 1970s, was designed to stimulate economic development in impoverished nations through trade. It offers nonreciprocal, duty-free treatment for certain U.S. imports from eligible developing countries. However, the last authorized GSP program expired on December 31, 2020, leaving room for improvement in reflecting the realities of the 21st-century economy.

Evidence suggests that several developing countries are adopting digital trade policies similar to China's restrictive Cybersecurity Law, which can be detrimental to their own economic interests. These countries benefit from duty-free access to American markets under the GSP while implementing digital policies that undermine American values, jobs, and exports. The Digital Trade for Development Act aims to prevent this by incorporating digital trade as a statutory consideration in designating beneficiary developing countries under the GSP.

The legislation empowers the U.S. Trade Representative (USTR) to prevent countries from receiving beneficiary developing country status if they engage in practices that restrict the free flow of data or enforce other restrictive e-commerce policies that are against U.S. strategic interests in the technology sector.

Various industry associations have expressed their support for the Digital Trade for Development Act. BSA | The Software Alliance commends Congressman LaHood for reintroducing the legislation, highlighting its role in modernizing the GSP and promoting protections for the privacy of personal information. They believe that the United States should prioritize these important principles and remain vigilant against digital barriers that hinder sustainable development outcomes or limit the benefits of digital transformation for all.

ITI, the global trade association for the technology industry, also lauded Congressman LaHood's initiative. ITI President and CEO Jason Oxman stated, "Digital trade supports the modern economy, enhances productivity, and enables consumers to benefit from the global marketplace." He further emphasized the need for the global trade system to be modernized and for governments, including the United States, to implement the policy principles outlined in the legislation.

The reintroduction of the Digital Trade for Development Act by Congressman Darin LaHood signals a commitment to advancing American strategic interests worldwide while promoting economic development in developing countries. The bill's emphasis on updating the GSP to align with the demands of the digital era and preventing restrictive digital trade policies demonstrates a proactive approach to ensuring a fair and open global trade environment.