Reply To: Generalized System of Preferences (GSP) Add New Topic
For those who are not aware GSP or Gereral System of Preferences is how Ecuador, in this case, is able to ship certain flowers into the US duty free. I believe rose are the exception with most other products falling within the GSP guidelines.
The act is temporary and thus must be renewed every few years and we are now at that date and it has not renewed in time. So it will lapse and importers will need to pay the duty and hope they get the money back when the act is renewed. The cost will be passed along in prices as line items or buried in the cost. Obviously it is a political tool as well so there are issues to be worked out before everyone signs.
The Ecuadorean and American governments have not been on warm terms for a while so there is no telling wheat will happen but I suggest they will work it out.