U.S. jobber and importers will no longer pay a 6.8 percent duty on Ecuadorian roses , the windup of a year - long campaign by the Society of American Florists and other diligence groups to bring economical relief to buyers in the industry .
SAF posit a formal petition to the United States Trade Representative position in March asking for rose to be added to the Generalized System of Preferences , a program that eliminates tariffs on more than 5,000 mathematical product while helping developing commonwealth grow their economy and deepen trade relations . The USTR recommended to the White House that roses be added to the GSP , and on Oct. 30 the White House release its proclamation to alter responsibility costless treatment . Effective Nov. 1 , fresh stinger rose wine will be part of the GSP.SAF estimates this change will keep start the industry $ 15 million in the next year — a issue that will grow over clip because the Competitive Need Limitation , or crown bring down on import products benefitting from GSP , increase at a metrical stride . The capital is in place to ascertain that products benefitting from duty - free position do n’t supplant domestic production . “In these challenging economical times , off the duty is welcome bottom - line relief to intemperately - hit segments of the U.S. flowered industry , ” says Kate Penn , chief operating officer of SAF . “ By eliminating this extra cost of doing business , the entire industriousness benefits . ”SAF ’s protagonism work on this authoritative win for the industriousness goes back more than a class and a half to an initial meeting with the USTR in March 2019 , finally culminating in SAF submitting a formal request to the USTR in March 2020 . SAF jobber and importer extremity also testified on behalf of SAF and the industry to the U.S. International Trade Commission in June . Throughout the process , SAF work with a alinement of other industriousness groups that supported the petition effort , including the Association of Floral Importers of Florida and Expoflores . U.S. floral retailer have benefitted greatly from responsibility - innocent implication of cut flowers both through trade agreements and GSP . Nearly 80 per centum of cut flowers purchased in the U.S. are originate in other res publica and almost 95 percent of those imported come from land where alleviation from duties is applied . However , because roses as a mathematical product were not included in the GSP — and because the U.S. does not have a freestanding trade understanding with Ecuador — the diligence had to pay a 6.8 pct duty on Ecuadorian roses until now . “In the past , the import tax was either take in by our company or passed on to our retail customers , ” pronounce Bill LaFever , PFCI , SAF chairperson and president of Bill Doran Company in Rockford , Illinois . “ remove it will benefit the entire manufacture . ”In reply to concerns about the encroachment on domestic producer , SAF testified during GSP hearings that removing duty will not lead in an increase in imported products because the U.S. presently imports an amount of Ecuadorian roses that almost equalize the Competitive Need Limitation , or cap imposed on imported products benefitting from GSP . to boot , Ecuador ’s power to increase production would be limit due to growing cycles of roses and land and infrastructure restriction . SAF also evidence that , since U.S. jump growers represent such a small percentage of the U.S. rose market place — an judge 1.5 percentage — the move will not harm the domestic rose production market . “We embrace our domestic growers and the wonderful product they grow , ” said Ben Powell , president of Mayesh Wholesale , headquartered in Los Angeles , and one of the wholesalers who testified on behalf of SAF to the ITC . “ We involve them to be successful . But the disappearing of this significance tax of about 2 cents per stem wo n’t change the playing discipline in roses . It will just relieve our industry — which has enough challenge — of a significant and unneeded tax on the supplying chain , florists and , ultimately , on the consumer . ”The current GSP programme is put to run out Dec. 31 , 2020 . SAF is advocating for swift Congressional activity to renew the political program , which is typically done in two - year increments .
For more information : SAFsafnow.org
