Trusted Trader Programs, Tariff Elimination Should Be U.S. Objectives in Japan Negotiations, Stakeholders Say
The U.S. should focus on eliminating tariffs, harmonizing trusted trader programs and making flexible rules of origin as negotiating objectives with Japan, industry groups told the U.S. Trade Representative’s office in comments posted on June 10. The comments, 89 in all, were submitted to help USTR craft negotiating objectives with Japan as part of the ongoing Trans-Pacific Partnership agreement negotiations (see 13050608).
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Both the American Apparel and Footwear Association and the U.S. Association of Importers of Textiles and Apparel argued against including a yarn-forward rule of origin in any agreement with Japan. Doing so would “eviscerate the benefits for apparel producers in the Agreement, harming many of America’s more innovative and well-known companies, as well as the thousands of jobs they support,” said the importers association. “The inclusion of Japan in the TPP adds an element of urgency to the need to provide U.S. apparel brands with a workable rule of origin.” AAFA said yarn-forward serves as a localized trade barrier, one that would discourage the use of TPP by both importers and exporters.
The National Council of Textile Organizations, however, called a yarn-forward rule “essential,” especially since Japan is the eighth largest export market for U.S. textile products. The NCTO also said USTR should include currency manipulation provisions in the TPP. The “predatory” currency practices of the Japanese government are designed to boost their own exports at the expense of other countries, NCTO said. “It makes no sense to ignore such a fundamental trade issue in the TPP, particularly one that has such a significant impact on U.S. jobs and production.”
Many groups argued for immediate elimination of tariffs between the two countries. The National Association of Manufacturers also said USTR should secure a de minimis threshold of at least $800, and greater transparency in Japan’s customs system, particularly for advanced rulings. The U.S. should also harmonize its Customs-Trade Partnership Against Terrorism program with other TPP parties' security programs. This would preclude the need for USTR to separately negotiate mutual recognition agreements with each trading partner in the TPP, NAM said.
USTR is holding a public hearing on U.S. negotiating objectives with Japan July 2. The agency also asked the International Trade Commission to investigate probable economic effects of providing duty-free treatment for imports of products from Japan and the ten other TPP countries on competitive U.S. industries and consumer (see 13050126).