US: 'Encouraging' messages for footwear and apparel in Obama’s national address
21/01/2015
FDRA president Matt Priest said: "For years now our leaders have been negotiating a Pacific free trade agreement that would greatly benefit American consumers and the footwear industry by providing nearly half a billion dollars in duty savings. I am encouraged that the President strongly outlined the need to pass the Trans-Pacific Partnership (TPP) in 2015.
“I was impressed he spoke so passionately about trade and is working to convince the public of its benefits and the Congress of the need to pass Trade Promotion Authority (TPA) - the same authority given to every President since Nixon. He will not be alone. The footwear industry is committed to telling its story and how TPA and TPP will help create and strengthen footwear design, marketing, logistics and retail jobs across America.
“The industry and our consumers paid over $2.7 billion in footwear duties in 2014, more than $400 million of which was taxed on TPP footwear imports alone. Imagine the impact on consumers and footwear companies if outdated footwear tariffs from the 1930s - reaching upwards of 67.5% - were eliminated on footwear out of TPP countries.”
The FDRA says footwear tariffs average 10% and reach upwards of 67.5%. Duties on leather loafers are 8.5% versus 48% on most children’s shoes. It estimates that by the end of 2015, the TPP would provide duty savings of $500 million per year.
The American Apparel and Footwear Association spoke along the same lines, with its CEO, Juanita Duggan, publishing a letter beforehand which stated: ”We ask that you:
• Urge immediate enactment of Trade Promotion Authority (TPA), which is urgently needed for the United States to conclude robust trade agreements currently being negotiated with our top trading partners in Europe and the Pacific Rim;
• Call for swift renewal of expired or expiring trade provisions, such as the Generalized System of Preferences (GSP) and the African Growth and Opportunity Act (AGOA), which create shared economic partnerships between workers in the United States and the developing world; and
• Champion the benefits of trade – which will open foreign markets for our exporters and give US manufacturers and consumers access to goods and inputs produced abroad.”
Share this story:
