September 25, 2023

US pork producers advocate for generalised system of preferences renewal

The UK pork industry seeks to revive the Generalised System of Preferences (GSP), a programme vital for market access, with an emphasis on stronger enforcement mechanisms, National Hog Farmer reported.

Randy Spronk, a prominent Minnesota-based pork producer and former president of the National Pork Producers Council, presented his testimony before the US House Committee on Ways and Means' Subcommittee on Trade. His testimony was part of a hearing titled "Reforming the Generalised System of Preferences to Safeguard US Supply Chains and Combat China."

At the heart of his testimony was the pressing issue of the US GSP, which expired in 2020. This programme historically granted duty-free treatment to goods imported into the US from beneficiary developing nations.

Spronk voiced the stance of US pork producers in favour of renewing the GSP, emphasising its value as a strategic tool for US trade negotiators. He said that the GSP will give US trade negotiators another tool to persuade countries to eliminate trade restrictions on US products.

He further proposed that a renewed GSP should encompass more robust enforcement mechanisms, providing negotiators with the means to ensure that countries fulfil their obligations.

In the past, the US pork industry has successfully leveraged the GSP programme to secure market access in countries such as Argentina and India.

Expanding export markets is deemed paramount to sustaining the prosperity of the US pork sector. In 2022, the industry exported nearly US$7.68 billion worth of pork to over 100 foreign destinations. These exports played a pivotal role in supporting approximately 155,000 jobs in the US, injecting US$14.5 billion into the nation's economy. Importantly, this equated to an added value of approximately US$61 per swine marketed in 2022, representing 25% of its total value.

Spronk said that promoting the economic growth and development of GSP recipient countries is a good business proposition because increased income and buying power in those markets will create future export opportunities for US pork producers."

-      National Hog Farmer