Three Major Footwear Updates This Week
Vietnam Tariffs: The Trump Administration officially labeled the government of Vietnam a currency manipulator today, which marks another step forward toward possible tariffs. The United States Trade Representative (USTR) could use the Treasury Department's findings to justify tariff action, possibly before the Section 301 public hearing scheduled on December 29th. Treasury found that Vietnam engaged in these currency practices to create an "unfair competitive advantage in international trade," and the report highlighted the large expansion of Vietnam's export capacity for apparel and technology as one reason for the U.S.'s large trade deficit with Vietnam. As we learn more information this week, we will continue to keep you updated via email and potential member phone calls.
Potential MTB Lapse: All 65 current footwear MTBs are set to expire on December 31st at midnight, and Congress has not yet been able to finalize a bill to extend them. FDRA believes that these temporary tariff cuts will likely lapse at the end of the year and Congress will try to pass legislation to renew and expand them in early 2021. The holdup is due to Rep. Adriano Espaillat's (D-NY) objections to many, but not all, of the footwear MTBs. Under the process, any MTB request is thrown out if a Member of Congress objects to it. FDRA is working with Rep. Espaillat's office and the House Ways & Means Committee to try to find a path forward on this issue, so that the bill can move quickly with as many footwear MTBs as possible. The Final MTB Report, released in August, advanced more than 130 footwear MTB petitions to Congress.
Uyghur Legislation: Senator Marco Rubio (R-FL) is working to advance his bill (The Uyghur Forced Labor Prevention Act, S. 3471/H.R. 6210) before the end of the week. It passed the House in September with an overwhelming vote of 406 to 3, and nearly one-third of the Senate has signed on as a cosponsor. The bill would ban imports from the Xinjiang Autonomous Region unless companies can provide clear and convincing evidence the product is not made with forced labor. Senator Rubio's office plans to introduce some changes to the bill to improve it and make its goals achievable. Once it passes the Senate, the House will have to vote again on the revised bill. The bill's lead sponsor in the House, Rep. Jim McGovern (D-MA), said the House will not accept any changes that "weaken" the bill.
FDRA is holding an important Customs & Trade Working Group call for FDRA Members on January 14th to provide key updates on each of these issues. We will also hear from U.S. Customs & Border Protection (CBP) on enforcement. Register here:
Past FDRA Member Weekly Check-In Call Recordings
FDRA Members can view past FDRA Member Weekly Check-In calls here: FDRA Intel Center (You need to register and create a password to access).