Business Leaders Praise Government Program, Call for Tougher Enforcement

Strategic Insights -

Top business leaders testified before the Senate Finance Committee on Monday, praising a government program that provides massive tax breaks to selected developing countries. However, they also expressed concerns about the program's effectiveness and called for Congress to step up enforcement if it renews the 20-year-old Generalized System of Preference (GSP) Program. The program provides duty-free access to the United States for products from developing countries, with the goal of promoting economic growth and development.

Key Takeaways:

  • The Generalized System of Preference (GSP) Program provides duty-free access to the United States for products from developing countries.
  • Business leaders praised the program as a tool for protecting intellectual property and fighting piracy of computer software, music, and films.
  • Renewal of the program must include strict enforcement of GSP requirements in countries that may no longer need GSP protection, particularly in Turkey, Poland, and Egypt.
  • Overseas piracy costs the United States more than $1.3 billion in losses, according to Lawrence Levinson, Washington counsel for Viacom Inc. and Paramount Communications.
  • Lynn Greenwalt, a spokeswoman for the National Wildlife Federation, supported renewing the program but warned about its environmental effects and called for environmental conditionality to be applied to GSP benefits.
  • Business representatives urged tightening criteria when nations no longer qualify for GSP protection.
  • The 20-year-old program expires on September 30 if Congress does not extend it.

Statistics:

  • The GSP Program provides duty-free access to the United States for products from developing countries.
  • Overseas piracy costs the United States more than $1.3 billion in losses.
  • The program expires on September 30 if Congress does not extend it.

Sources:

  • "Business leaders praise GSP, but with caveats", Washington Post, June 20 [no date mentioned]
  • Origination unclear - reported date is in the text June 20. According to the original text, Lawrence Levinson, Washington counsel for Viacom Inc. and Paramount Communications testified that overseas piracy costs the United States more than $1.3 billion in losses