USA – Floral industry leaders are making a concerted effort to convince Congress to renew a trade program that could save the industry about USD 20 million annually.
The Generalized System of Preferences (GSP) allows for duty-free access to imported flowers, a critical lifeline for florists across the nation.
The Society of American Florists (SAF) and the Association of Floral Importers of Florida (AFIF) recently held discussions with U.S. Congress members to advocate for the GSP’s renewal.
This program previously provided significant savings by eliminating tariffs on various floral imports, including Ecuadorian roses, which saw a 6.8% tariff removed in 2020. However, the GSP expired shortly after, leaving the floral industry in a challenging position.
Joe Bischoff, SAF’s Senior Lobbyist, emphasized the importance of this initiative. “Our industry has been pushing for this for so long, to no avail yet. It was encouraging to hear that at least we’re being heard, that our continued outreach matters,” he stated after meetings on September 10 with congressional staff from the House Ways and Means Committee and the Senate Finance Committee.
The meetings highlighted how renewing the GSP would positively impact florists and consumers. SAF CEO Kate Penn echoed Bischoff’s sentiments, noting the importance of keeping trade programs at the forefront of congressional discussions. “Showing them how the renewal would help the industry is crucial, and legislators are interested in addressing this matter,” she explained.
The GSP’s lapse has led to increased costs for floral importers, which, in turn, affect end consumers. Christine Boldt, AFIF Executive Vice President, emphasized that the loss of these savings over the past four years has compounded difficulties within the industry.
“Importers will have to pass additional costs to their customers. This trickle-down effect results in increased costs for the end consumer,” she said.
Boldt also pointed out that the added expenses have stunted growth opportunities for many floral businesses. “They haven’t been able to put money into their people or expand the number of employees they hire. It’s been hard for importers, who are the ones paying the duties first,” she added.
Despite their efforts, neither SAF nor AFIF received firm assurances that Congress would pass the GSP renewal by the end of the year. Bischoff noted a mixed sense of optimism. “We’re hearing that there is an appetite to move these trade programs, and that the GSP is probably at the top of the list,” he stated.
However, he cautioned that negotiations around reimbursements for tariffs paid since January 2021 might be necessary.
To maintain momentum, SAF plans to continue its advocacy efforts. On November 19, Bischoff, Penn, and SAF President Oscar Fernandez will return to Washington, D.C., to meet with congressional offices again about this issue.
If the GSP is not renewed before SAF’s Congressional Action Days on March 17 and 18, it will remain a top priority at those meetings.
In the meantime, Bischoff urges floral professionals to reach out to their elected officials to express the importance of the GSP renewal. “Your advocacy doesn’t end in Washington. It’s vital that they deliver that message at home,” he said.
The floral import industry plays a significant role in the U.S. economy, with imported flowers making up about 64% of the fresh flowers sold in the country.
As the largest consumer of fresh flowers globally, the U.S. relies heavily on imports from countries like Colombia and Ecuador. The renewal of the GSP could not only support floral businesses but also help keep prices stable for consumers.
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