{"id":1726,"date":"2023-11-20T15:00:00","date_gmt":"2023-11-20T16:00:00","guid":{"rendered":"http:\/\/shinsori.me\/?p=1726"},"modified":"2023-11-21T01:51:15","modified_gmt":"2023-11-21T01:51:15","slug":"why-are-businesses-paying-millions-in-new-tariff-fees-opinion","status":"publish","type":"post","link":"http:\/\/shinsori.me\/index.php\/2023\/11\/20\/why-are-businesses-paying-millions-in-new-tariff-fees-opinion\/","title":{"rendered":"Why are businesses paying millions in new tariff fees? | Opinion"},"content":{"rendered":"
\n

\"merlin_2893848.jpg\"<\/p>\n

\n

Stephen LeFevre, director of strategic and foreign affairs for World Trade Center Utah, left, moderates a discussion on supply chain issues and the impact on local businesses with Troy Keller, international trade and commercial policy adviser for World Trade Center Utah, Jason Fowler, president and CEO of Air & Sea International, Charlie Freeman, deputy counsel for Malouf Companies, and Jack Hedge, executive director of the Utah Inland Port Authority, during the Utah Business Economic Outlook Summit at the Grand America Hotel in Salt Lake City on Nov. 5, 2021.<\/p>\n<\/figcaption><\/span><\/p>\n

\n

Scott G Winterton, Deseret News<\/p>\n<\/div>\n<\/div>\n<\/figure>\n

In the 1800s, Utah\u2019s economy was so disconnected from global markets that households were encouraged to make and sell homemade products with the goal of replacing \u201calmost every article of imported goods\u201d<\/a> coming from outside the territory. The policy was driven in part by necessity but also by a desire to preserve scarce capital from being spent abroad.<\/p>\n

Before long, the arrival of the railroad and the overall industry of Utah\u2019s population rendered this home manufacturing policy unnecessary, and in due course, the economy boomed. Today, Utah has integrated into the global marketplace and boasts one of the most diverse economies in the U.S.<\/a><\/p>\n

Despite this progress, ineffective trade policies still hold us back, sometimes quite needlessly. Take for example a federal trade policy called the Generalized System of Preference (GSP). It is, perhaps, the most impactful U.S. government trade program you\u2019ve never heard of.<\/p>\n

This bipartisan program is supposed to let U.S. manufacturers import freely from developing economies that are friendly to, and strategic for, the U.S. To protect U.S. manufacturers, many goods that are commonly made in the U.S. do not receive this duty-free treatment. In this way, the GSP program simultaneously protects U.S. manufacturing while incentivizing imports that are strategic.<\/p>\n

GSP has been around for approximately 50 years. However, on Jan. 1, 2021, Congress allowed the GSP program to lapse, putting these duty-free trade benefits on hold. Its renewal, despite being favored by a bipartisan majority, has simply not been the priority it ought to be. As a result, for three years, the U.S. government has held approximately $3.25 billion in escrow from importers, which is earmarked to be refunded upon the program\u2019s renewal. A multi-billion-dollar infusion into our economy is sorely needed.<\/p>\n

Utah companies continue to pay tariffs each month on imports from GSP-eligible countries, hoping these costs, which now total $26 million<\/a>, will be refunded upon program renewal. These tariffs have impeded growth and profitability for businesses in our state \u2014 two vitally important issues for World Trade Center Utah.<\/p>\n

WTC Utah helps to drive new, global business to Utah companies and the state, and our team is heavily focused on strengthening Utah\u2019s business connections with our trade allies around the world. In addition to partnering with the Governor\u2019s Office of Economic Opportunity to organize governor-led trade missions abroad, we connect Utah companies to global opportunities through our robust network, international programs and business services.<\/p>\n

\n
Related<\/div>\n