Froman, Holleyman Champion Trade Agenda as TPA Introduction Looms
The Trans-Pacific Partnership is poised to include the strongest environmental regulation in the history of global trade agreements, despite significant resistance from TPP partners, said U.S. Trade Representative Michael Froman in a speech to the Outdoor Industry Association on April 15. The pact will crack down on illegal fishing, logging and other wildlife trafficking, and the U.S. will be able to sanction countries that fail to meet their environmental commitments, said Froman.
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Froman encouraged environmental organizations to jump on board the agreement, saying the TPP provides a critical opportunity to tackle environmental degradation. “I don’t think we have the luxury of not acting, of not doing everything we can to protect endangered wildlife, to address illegal logging and fishing, to reduce overfishing, to protect marine mammals and the marine environment,” said Froman. “Sometimes, in the heat of political debate, people lose sight of the fact that we have an obligation to this and future generations – to act.” The Sierra Club and other environmental organizations recently rejected the agreement, saying it would jeopardize U.S. regulations (see 1501220022).
TPP and the broader U.S. trade agenda continues to hinge, however, on passage of Trade Promotion Authority, Froman added. Senate Finance Committee Chairman Orrin Hatch, R-Utah, said on April 13 he expects TPA introduction and a hearing on the legislation this week (see 1504130064).
Meanwhile, Deputy USTR Robert Holleyman also stressed that without TPA the U.S. won’t be able to move forward with its trade plans, in a speech at a American Apparel and Footwear Association (AAFA) conference on April 15. Holleyman said the U.S. faces a “game-changing” moment for its trade agenda. The TPP provides a chance to bring global trade up to speed with 21st century changes in industry, he said. “We’re working on a bipartisan basis in both Houses to get [TPA] done,” said Holleyman. “We are optimistic that the leadership in Congress will introduce legislation on this soon, and we are eagerly awaiting its expeditious review and approval.”
TPA will bring home a TPP agreement that will immediately slash tariffs on a wide range of products, said Holleyman. “All qualifying goods will receive significant duty reduction on the first day the agreement is in force with a significant portion going to zero immediately,” he said. The agreement will eliminate Japanese tariffs on “qualifying” leather footwear goods, Holleyman said. AAFA has long called for Japanese changes to its footwear tariff rate quota (see 14040816).
Holleyman also called for passage of renewals for the African Growth and Opportunity Act, which expires at the end of September, and the Generalized System of Preferences, which expired in mid-2013. The Obama administration is still reviewing the AGOA program in order to improve its next iteration, he said. U.S. industry and their African counterparts have called for immediate renewal since 2014 in order to ensure supply chains stay intact (see 1502260062). Both AGOA and GSP are likely candidates for a TPA-led trade package this Congress.
The World Trade Organization Trade Facilitation Agreement will be a huge boon to U.S. industry and global trade, as well, said Holleyman. Ratification by two-thirds WTO membership, the necessary threshold for implementation of the agreement, remains feasible by the end of 2015, he said. Holleyman also criticized counterfeit apparel sales on Taobao, an online site operated by Alibaba that serves Chinese customers. AAFA urged Froman to act against Taobao in an early April letter (see 1504100012).