Trade Subcommittee Chair Predicts GSP Can Pass House

Rep. Adrian Smith, R-Neb., said that despite Democratic opposition in the House Ways and Means Committee to a package of bills renewing and altering the Generalized System of Preferences benefits program, he expects there will be enough support for the bill to pass under suspension of the rules, which requires two-thirds of the House. Most bills this year have passed under suspension of the rules, rather than with a rule fashioned by the very narrow Republican majority. Smith said GSP works well to get its beneficiary countries to treat U.S. exports more favorably.

Smith, who spoke about GSP during a hallway interview at the Capitol May 7, said that although the package allows for petitions to expand the product list, he hasn't prejudged that more goods should be covered by the system of tariff breaks for some goods from developing countries. "We'll see what the needs are," he said.

He acknowledged that the reason GSP couldn't pass during the previous Congress, when Democrats controlled both the House and Senate, was because Democrats insisted on linking it to Trade Adjustment Assistance. Republicans argue that GSP is not a significant enough trade liberalization to warrant spending on retraining and generous unemployment benefits for domestic workers whose jobs were lost due to foreign competition.

But even with that hurdle, Smith said he believes there will be enough Democratic votes to get the bill through the House. "With the workforce shortage right now, especially with employers willing to foot the bill for retraining, I think there's opportunities to ultimately contribute solutions to our supply chain challenges that can ultimately help consumers and domestic manufacturers," he said.