Senators Warn of Harmful Yarn-Forward Exemptions in TPP
The U.S. should not exempt competitors in Trans-Pacific Partnership member countries from the yarn-forward rule of origin, a group of Senate Democrats said May 2. In a letter to Acting U.S. Trade Representative Demetrios Marantis, the senators said their states house various wool suit and cotton dress shirt manufacturers, companies that “already compete at extremely narrow margins.”
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
As the administration reviews import sensitive products, to determine which textile products should be yarn-forward exempt, “we would strongly object to a supply list that would allow competitors in TPP member countries to utilize low-cost inputs from non-TPP suppliers, including China, while receiving duty preference benefits when exporting to the U.S. market,” the letter said. “Such an outcome would be unfair to our domestic manufacturers and would undermine the viability of our domestic industry.”
The letter was signed by four Senate Finance Committee members: Sherrod Brown, D-Ohio, Robert Menendez, D-N.J., Benjamin Cardin, D-Md., Robert Casey, D-Pa., and Senate Majority Whip Richard Durbin, D-Ill. Email ITTNews@warren-news.com for a copy of the letter.