TPA Should Strengthen Congressional Objectives on FTA Customs Harmonization, Says AAEI
Future U.S. free trade agreements, such as the Transatlantic Trade and Investment Partnership, should include an Authorized Economic Operator Mutual Recognition Agreement (AEO MRA) in order to ensure each signatory country has an AEO program based on the World Customs Organization Standards to Secure and Facilitate Global Trade Framework, said American Association of Exporters and Importers President & CEO Marianne Rowden in a Dec. 20 letter (here). That can be accomplished by passage of Trade Promotion Authority that enables Congress to demand negotiating objectives, such as the trade facilitation related AEO MRA requirement, said Rowden. The letter was addressed to Senate Finance Chairman Max Baucus, D-Mont., and House Ways and Means Chairman Dave Camp, R-Mich.
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“This obviates the need for customs administrations to do the lengthy side-by-side comparison of each country’s supply chain security program,” said Rowden. “We also recommended as part of the AEO MRA, any company validated as a ‘low risk trusted trader’ in one country would be automatically treated as a ‘trusted trader’ in the other countries. Such designation would provide enormous benefit to companies who have made investments in AEO programs as they now need to apply for trusted trader status in each country’s AEO program where they operate.”
Rowden also urged TPA legislation to include negotiating objectives on comprehensive market access, rules of origin clarity and harmonization among FTAs. Congressional leaders must pass Trade Promotion Authority “as soon as possible” in order to provide certainty to future U.S. FTA partners. “The lack of TPA leave negotiators in a vulnerable position negotiating trade issues which may be politically sensitive,” said Rowden, citing Japan, a country that reportedly remains reluctant to make concessions on key agricultural products. “Such negotiators may not be willing to agree to concessions without the assurance of TPA’s 'fast track' legislative process for TPP through Congress.”