The National Corn Growers Association (NCGA), along with 25 other agriculture groups, is urging Congress to reauthorize the Generalized System of Preference (GSP).
The GSP is a key U.S. trade program that expired at the end of 2020. In a letter addressed to the Senate Finance Committee and the House Ways & Means Committee, the groups emphasized the importance of renewing GSP to expand foreign markets for American growers and boost economic growth in developing countries.
“American food and agriculture enterprises are continuously looking to diversify export opportunities, and the GSP program offers a starting point to broaden and deepen trading relationships with countries,” the letter stated. “Our nation’s farmers and ranchers depend on an ongoing dialogue with our partners to compete on a global stage. With challenges emerging in key markets, exploring market access opportunities in new regions of the world will be imperative to keep American agriculture as a leader in global exports.”
The GSP, one of the oldest and largest trade programs in the U.S., has been a crucial tool in fostering international trade by helping eliminate trade barriers. NCGA and other agricultural organizations have raised concerns that the program’s expiration threatens to undo decades of progress and hinder future market opportunities. The letter highlighted how the program can encourage countries to follow international trade standards, which is vital for industries like corn that face challenges such as Brazil’s ethanol tariff.
“Participation in the GSP program should continue to be conditional on criteria that support U.S. market access into GSP beneficiary countries,” the signatories added.
As American farmers grapple with rising input costs and falling corn prices, reauthorizing the GSP could offer much-needed relief by expanding export markets. The NCGA and other ag groups argue that renewing this program is essential for U.S. agriculture to remain competitive globally.
“America’s farmers and ranchers rely on foreign market access to thrive and grow their businesses,” the letter noted. “Allowing signature trade programs to expire for years on end hurts the United States’ credibility as a trusted trade partner.”
Reauthorizing the GSP is seen as a critical step to ensure the U.S. remains a leader in global agricultural exports, helping both farmers and developing nations.
