Proposed Bill - GSP Renewal and CNL Update
Representatives Blake Moore (R-UT) and Suzan DelBene (D-WA) introduced the CNL Update Act of 2023 to modernize U.S. trade policy tools, benefit American businesses, and drive global supply chains out of China.
For almost 50 years, the Generalized System of Preferences ("GSP") program has allowed the United States to foster better trade relationships with the world's most developing countries and reduce their reliance on foreign aid. More recently, the GSP has been a critical tool to move production out of China and into more secure environments. However, the current, outdated rules limit the GSP's potential and create roadblocks for our trade and foreign policy goals.
The CNL Update Act of 2023 will modernize the GSP program by increasing the topline threshold levels for businesses to $600 million, which are known as Competitive Need Limitations ("CNLs"). In addition, the bill introduces a 5% annual growth provision for the GSP program, offering a structured and predictable growth trajectory. These changes will make it easier for Utah companies to access key products, strategically shift global value chains outside China, enhance U.S. national security, and protect domestic industries.
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