USTR Should Oppose Tariff Retaliation for Chinese WTO Violations, Says AAFA
Should the Obama administration enact legislation or apply retaliatory tariffs to address Chinese currency manipulation, U.S. employment and economic recovery will suffer, said American Apparel and Footwear Association (AAFA) President and CEO Kevin Burke in a letter to the U.S. Trade Representative Sept. 20. In preparation for an Oct. 4 hearing, USTR requested comment in August on Chinese commitment to the World Trade Organization (WTO) (see 13081409).
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The administration should instead address Chinese currency through a multilateral approach that emphasizes dialogue, Burke said, saying the Chinese 2001 WTO accession (here) continues to be a boon to U.S. growth. “China is now the fastest growing market for U.S. apparel and footwear brands,” said Burke. “Sales of U.S.-branded footwear and apparel in the Chinese market, even if those clothes and shoes are not made in the United States, support thousands of U.S. jobs --- high -- value jobs in design, research and development, marketing, logistics, sales, and other fields. In fact, China, in many cases, is the only growing market for U.S. brands and retailers. This holds true for many other U.S. industries as well.”
China is the largest and fastest growing market for U.S. cotton, the second largest export market for U.S. yarn and third largest export market for U.S. fabric, Burke said, noting China bought over $1.3 billion in U.S. textiles in the year prior to August 2013. The Chinese accession to the WTO equips the U.S. with palatable tools to address concerns, but issues do, however, remain unresolved. “AAFA recognizes that problems in the U.S.-China trade relationship still exist today and China is still not fully meeting its WTO obligations.”
Burke said the Chinese need to resolve the following outstanding bilateral issues, among others:
- The majority of Chinese laws and regulations governing trade are too general and often contradictory.
- The product packaging, labeling, content, and safety compliance regulations put in place by China’s government often go far beyond globally recognized standards making compliance very difficult.
- Factory licensing schemes that prevent our members from selling in China what they make in China.
- Weak IPR protection on the Internet.
- A number of markets in China continue to sell fake apparel and footwear goods throughout the country.