USTR Reiterates Call for Customs Integration, Rules of Origin in TPP
The Obama administration hopes to include expedited procedures for express shipments, advance customs rulings, quick release mechanisms and transparent customs regulations in a final Trans-Pacific Partnership (TPP) agreement, the Office of the U.S. Trade Representative (USTR) said in a memo on TPP objectives made public on June 2. The U.S. also aims to strengthen customs cooperation with TPP partners to prevent illegal transshipment and duty evasion, said USTR, adding that strong rules of origin will be critical for the growth of TPP countries, including the U.S.
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The U.S. continues to push for a “yarn forward” rule of origin in TPP, as well as a short supply list, said USTR. The Vietnamese have resisted U.S. “yarn forward” pressure in the past (see 13082011). “U.S. textile and apparel manufacturers sold more than $10 billion worth of products to TPP countries in 2013, an increase of 5.4 percent from the previous year,” said the memo. “Many U.S. yarns, fabrics, and apparel currently face tariffs as high as 20 percent upon entering some TPP countries. Our goal in the TPP negotiations is to remove tariff and non-tariff barriers to textile and apparel exports to enhance the competitiveness of our producers in the Asia-Pacific region.”
USTR is also seeking to ensure investment fairness through provisions that prohibit discriminatory treatment against non-state owned enterprises, and add dispute settlement mechanisms. Among other objectives, the Office of the USTR aims to liberalize the historically closed Japanese auto market by dismantling a number of non-tariff barriers. “U.S. exporters have faced a broad range of formidable non-tariff measures in Japan’s automotive and other markets,” said the memo. “As a result, prior to Japan joining the TPP negotiations, the United States reached a series of agreements with Japan to address a range of issues in conjunction with Japan’s participation in TPP.”