Important Footwear Trade Update

Congress is set to vote tonight on coronavirus relief and government funding legislation. This is the last planned vote of 2020. MTB and GSP: This means that Congress will not extend the Miscellaneous Tariff Bill (MTB) or the Generalized System of Preferences (GSP) program before the December 31st deadlines. Congress will return in January and try to resolve issues with both trade bills. The MTB holdup is due in part 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, so that the bill can move quickly in 2021 with as many footwear MTBs as possible.

Uyghur Legislation: Congress also left unfinished The Uyghur Forced Labor Prevention Act (S. 3471/H.R. 6210). The bill, introduced by Senator Marco Rubio (R-FL), would ban imports from the Xinjiang Autonomous Region unless companies can provide clear and convincing evidence the product is not made with forced labor. 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. Passing the bill will be a top priority for Congress when it returns in January, although the Senate may introduce some changes to the bill.

Vietnam Tariffs: The Trump Administration has not yet announced any tariff action against Vietnam, but it has officially labeled the government of Vietnam a currency manipulator and is moving forward with its Section 301 investigation into Vietnam. The public hearing for the investigation is scheduled for December 29th. In its report, the Treasury Department found that Vietnam engaged in currency practices to create an "unfair competitive advantage in international trade" and 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 on this important issue, we will continue to keep you updated via email and potential member phone calls.

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).