Wyden Pledges Work on Alternate TPA Legislation, Targets Enforcement

“As far as I’m concerned substance is going to drive the timeline. Now some would like to lay blame for lack of support for the TPA proposal recently introduced in the Congress at the doorstep of the White House,” said Wyden. “The president and Ambassador Froman frankly are having a real challenge selling a product that members are not thrilled about. Policy matters and arbitrary timelines aren’t going to work.” The introduction of the TPA bill in January generated widespread opposition among Democrats on Capitol Hill (see 14021307).

The new TPA proposal should strengthen provisions on data localization barriers, state-owned enterprises, currency and labor rights in future trade pacts, said Wyden. Future trade agreements should also address environmental issues, he said. “Just like with labor, trade agreements also have to do more to promote environmental protection by setting and enforcing high standards our country can protect American jobs from countries that take a hands off approach to environmental protection,” said Wyden. “The Trans-Pacific Partnership (TPP) must put an end to … illegal fishing that threatens our oceans and stop trade in stolen timber and wood products in countries like Malaysia and Vietnam. The TPP also has to target illegal trafficking in wildlife.”

TPP should also guarantee greater market access for U.S. goods, including footwear, said Wyden. “Right now I’m mainly focused on getting a good outcome, the best possible outcome in the Trans-Pacific Partnership with respect to footwear,” said Wyden. “It’s my view we shouldn’t have a big array of protectionist tariffs on footwear.” He also said during the speech he supports the Affordable Footwear Act, a bill introduced in October that temporarily suspends duties on certain footwear (see 13110114).

One specific goal of the Obama Administration should be ensure to ensure the Japanese tariff rate quota (TRQ) on U.S. leather footwear is eliminated through the TPP, said AAFA Executive Vice President Steve Lamar in an interview at the event. The U.S. continues to criticize Japanese reluctance to make adequate concessions on market access and agricultural issues (see 14031821). “If they’re able to accomplish the other issues, that basically strips away any obstacle to do this. I mean, this is so much smaller to their economy than some of those larger issues like rice and some of the ag issues,” said Lamar. “If they’re demonstrating a willingness to open up there then this is an area where they can open up as well.” Lamar also pressed the issue in an April 7 letter to President Barack Obama (see 14040816). Japan removed the TRQ in its bilateral free trade agreement with Mexico, Lamar said in the interview.

The U.S. must also prioritize more enforcement of antidumping and countervailing duties and intellectual property rights protection, said Wyden. “Customs often appears to focus on security at the expense of its trade mission. Fake Nike shoes and counterfeit computer chips with a fake Intel logo too often make their way past America’s border agents," said Wyden. "And they make their way past those agents unnoticed. Foreign companies have evaded the trade remedy laws protect our workers, like those in the solar and steel industries. A 21st century trade policy cannot work if the cops at the border aren’t doing an adequate job on the beat.” Passage of the ENFORCE Act, which is part of recently introduced Customs Reauthorization legislation, would strengthen enforcement at the border, said Wyden (see 13040911).

Wyden Pledges Support for Simple GSP Renewal

Wyden would support legislation that simply renews the Generalized System of Preferences (GSP), he said. “GSP is particularly relevant and important right now. I would tell you my first focus is to get the underlying program reinstated,” said Wyden. “There may be opportunities to update it. I’d first like to get it renewed and then begin what I think would be more extensive discussion about how to improve it.” The GSP program expired on July 31, 2013 (see 14032429).

U.S. companies have been paying almost $2 million a day in additional import duties since the lapse of GSP, said a recent Coalition for GSP report (here). Nearly 80 percent of the coalition has reported lost sales since expiration, said the study. There has recently been chatter on Capitol Hill that suggests renewal of GSP would help prop up a struggling Ukrainian economy, said Coalition for GSP Vice President Dan Anthony in an interview at the event. “Although U.S. importers are shouldering the costs of the duties, the GSP eligible countries are hurt by expiration or would benefit from renewal because the program is not currently being used to the extent its been used in the past,” said Anthony. “I know the Finance and Ways and Means committees continue working on GSP renewal. Helping Ukraine is just one of the many reasons to support GSP renewal.” -- Brian Dabbs