Leadership from the Society of American Florists (SAF) and the Association of Floral Importers of Florida (AFIF) pushed Congress last month to renew a trade program that allows for duty-free access to flowers, a move that could save the industry an estimated $20 million a year.
The program, the Generalized System of Preferences (GSP), provides pricing stability for the industry and savings that could be used to grow U.S. floral businesses. The Society of American Florists led a successful industry effort to get roses added to the GSP in November 2020, eliminating a 6.8% tariff on Ecuadorian roses. The program expired the next month and, despite ongoing advocacy by SAF, AFIF and countless other industries outside of floriculture, Congress has not renewed the GSP.
The GSP is frequently lumped into a legislative package rather than pushed as a stand-alone bill, which creates more hurdles for renewal, says SAF Senior Lobbyist Joe Bischoff, Ph.D. He added that reauthorization delays have been common throughout the program’s history.
Bischoff and SAF CEO Kate Penn on Sept. 10 met with offices of U.S. Congress members, committee staff for the House Ways and Means Committee, and the Senate Finance Committee to discuss how the GSP impacts the broader floral industry, florists, and the end consumer.
In those meetings, aides told Penn and Bischoff that keeping the renewal of trade programs top of mind for Congress and showing them how the renewal would help the industry is important, and something legislators are interested in addressing.
“Our industry has been pushing for this for so long, to no avail yet, so it was encouraging to hear that at least we’re being heard, that our continued outreach matters,” Penn says.
About a week later, AFIF Executive Vice President Christine Boldt sat down with members in both the Senate and House to advocate for the renewal of the GSP.
Import value estimates from the Economic Research Service show that the renewal would save the industry about $20 million a year. That lost savings over the past four years has added up, Boldt says. Because the bill has lapsed for so long, importers will have to pass additional costs to their customers — a trickle-down effect which results in increased costs for the end consumer, Boldt says.
The additional cost has also prevented companies in the floral industry from expanding, she says.
“They haven’t been able to put money into their people, or expand the number of employees they hire,” says Boldt. “They’ve not been able to add distribution centers, or invest in their warehouses. So it’s been hard for the business, for the importers, who are the ones that are paying the duties first.”
Despite productive meetings, neither SAF nor AFIF received assurances that the GSP would be passed by the end of the year.
“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,” says Bischoff. But in a lame duck year, there is mixed optimism that Congress will take action, he says, and some congressional staffers have indicated that compromise on reimbursements for the tariffs importers and wholesalers have paid since January 2021 may be needed.
SAF is continuing to advocate for the renewal of the GSP. On Nov. 19, Bischoff, Penn, SAF President Oscar Fernandez and five floral wholesalers will be in Washington D.C. to meet with congressional offices about the issue. And unless the renewal happens before SAF’s Congressional Action Days March 17 and 18, the issue will be a top priority at those meetings as well.
Meanwhile, Bischoff encourages floral professionals to reach out to their elected officials at their district offices to talk about why the renewal of the GSP is important — especially those serving on the House Ways and Means Committee and Senate Finance Committee.
“Your advocacy doesn’t end in Washington,” says Bischoff. “It’s really vital that they deliver that at home.”
Roxy Ekburg is a contributing writer for the Society of American Florists.
