ITC Finds Proposed US-Chile FTA Rules of Origin Change for Yarns Would Have Little Effect
A proposal to change the rules of origin under the U.S.-Chile free trade agreement for artificial filament yarn would have only a marginal effect on total U.S. imports and exports, and U.S. industry, the International Trade Commission said in a…
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report requested by the Office of the U.S. Trade Representative (here). Launched in June, the review vetted a proposed change agreed to by U.S. and Chilean negotiators to allow goods of subheadings 5408.22 and 5408.23 to qualify for preferences under the U.S.-Chile FTA after a change from certain headings under the same chapter (see 1606220009). Currently, goods under the subheadings only qualify with a change from another chapter. The proposed modification would allow the use of more non-originating rayon filament yarns, the ITC said in a statement. “Because U.S. imports from Chile are a small portion of total U.S imports of dyed and yarn-dyed woven fabrics, the likely effect on total U.S. imports of these products is negligible,” the ITC said. “Similarly, because the United States did not export any of these goods to Chile in 2015 and U.S. exports of these goods to Chile represented less than 1 percent of total U.S. exports in 2014, the likely effect of the proposed modification on total U.S. exports would be negligible.”