West Central Reporter

Rep. Darin LaHood (R-Illinois) has introduced the Digital Trade for Development Act that would modernize the Generalized System of Preferences (GSP) to support digital trade policies that promote further economic growth.

By modernizing the GSP, the act would add digital trade as a statutory consideration under eligibility criteria to further support economic growth internationally, a release from LaHood's website said May 7.

"Digital trade is an engine for economic success in the US and around the world," LaHood said in a Twitter post. "By modernizing the GSP, we can support open digital trade policies that expand economic growth in developing countries and advance American interests around the globe."

Congress created the GSP in the 1970s to help developing countries boost economic development through trading. The GSP system provides nonreciprocal, duty-free treatment for particular imports to the U.S. from eligible countries and allows for beneficiary developing countries (BDCs) to be selected based on mandatory eligibility criteria, the release said. 

The Digital Trad for Development Act needs modernizing as it does not reflect the 21 century, the release said. The new act would "incorporate digital trade as a statutory consideration in designating beneficiary developing countries (BDCs)," and the legislation would "permit the U.S. Trade Representative to prevent countries from receiving BCD status they restrict digital trade," according to the press release.