WF&FSA Offers Support for Roses to be Added to the GSP

Leadership testifies, organization sends letter in support as effort gains momentum

On June 19, WF&FSA President Tim Dewey with DVFlora and WF&FSA Immediate Past President Ben Powell with Mayesh joined leadership from the Society of American Florists (SAF) and the Association of Floral Importers of Florida (AFIF) to testify virtually before the U.S. International Trade Commission (USITC) in support of adding fresh cut roses to the Generalized System of Preferences (GSP). In the past few months, both SAF and AFIF have submitted petitions to add roses to the GSP which, if successful, would eliminate import duties on roses from Ecuador.

“During these difficult times, when COVID has devastated certain segments of the floral supply chain, it is more important than ever for roses to be added to the GSP to ensure quality floral product reaches all consumers in the U.S. marketplace, as affordably as possible,” said Dewey. “I applaud the USTR for accepting this petition and look forward to the final positive result.”

It is estimated that U.S. wholesalers turn to foreign suppliers to fill more than 98 percent of U.S. market needs for roses, which topped 1.8 billion stems in 2018. More than one-third of roses are subject to a 6.8 percent duty, costing the floral industry an estimated $12-$15 million per year. Ecuador, the second largest supplier of roses to the U.S. market, is the only significant supplier that is eligible for GSP yet does not benefit from a free trade agreement, unlike Colombia, Central American countries and African Growth and Opportunity Act member countries. Overall, testimony outlined the concept that this cost concession would benefit the entire floral industry, making each segment more successful through the elimination of this duty.  Earlier this year USTR announced that their office will hold hearings on adding roses to the GSP, which prompted this testimony and others.

Powell stated, “I am very appreciative of the opportunity to provide testimony in support of duty-free roses. The U.S. floral industry has spent tens of millions of dollars in recent years on import taxes which really do nothing to help our industry. We owe a special thanks to both SAF and AFIF for their great work advancing this issue.”

In addition to WF&FSA leadership testifying in support, the trade association also submitted a letter to U.S. Trade Representative Robert Lighthizer outlining the need to level the playing field for all roses imported into the U.S.  As stated in the letter, “granting this petition would mean more business opportunities including increasing the competitive advantage for U.S. florists across the nation.” Testimony will continue through August, with an announcement expected later this year. 

 

About WFFSA
The Wholesale Florist & Florist Supply Association (WF&FSA) is an international association comprised of wholesalers, suppliers, growers, importers and shippers of cut flowers, greens, plants and florist supplies and is headquartered in Annapolis, Maryland. For more information visit www.wffsa.org.

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