Today, U.S. Deputy Secretary of Commerce Bruce Andrews delivered remarks at the Retail Industry Leaders Association’s (RILA) Government Affairs Committee Meeting.
Before a group of public and private sector leaders, Deputy Secretary Andrews discussed the importance of the Trans-Pacific Partnership for retailers and how the trade agreement will benefit the retail industry.
Remarks as Prepared for Delivery Thank you, Jennifer Safavian, for the kind introduction and for inviting me to join you.
I’m here today to talk about the importance of trade to America’s businesses, workers, and communities. I know that all of you know the benefits of trade better than anyone. Your companies are on the front lines every day seeing the positive impact it has on our communities across the country. The businesses you represent are living examples of the success that comes from trade.
At the Department of Commerce, we are laser-focused on making sure American companies can operate on a level playing field in the global marketplace. And as Deputy Secretary, I have had the great privilege to travel around the world to help American businesses. I have seen firsthand how enhanced trade creates jobs and helped get us out of the recession.
That’s why we need strong trade agreements – like the Trans-Pacific Partnership – that make it easier for businesses to ship their goods and services across the globe, while upholding our values and expanding market access.
Of course, as retailers, you don’t need me to sell you on the importance of new trade agreements. RILA has been deeply engaged in the TPP process from the very beginning. In fact, your organization sent the only retail delegation to the negotiations in July. While TPP will help American companies in many different sectors, our retail industry stands to see some of the greatest benefits, because your success relies as much on your ability to import as it does on how much you export.
Consider this: Vietnam is the United States’ second largest source of apparel imports. Last year alone, we imported over $9.1 billion in apparel from Vietnam – and importers paid over $1.7 billion in duties on those imports. Under TPP, all of those imports that meet the rule of origin will see a duty cut on day one.
Vietnam’s status as a significant supplier of apparel and textile goods to the United States presents opportunities for some in this room, while other companies have concerns – which is why we structured the market access proposal with both of these points of view in mind.
While duties on less sensitive textiles and apparel products are eliminated completely on day one, duties on more sensitive products are cut upfront and will be eliminated after a period of time.
In addition to the significant duty savings that will support your businesses’ bottom lines, TPP will also make it easier for you to do business. For example, TPP also includes requirements to facilitate e-commerce, which I know is a big issue for RILA. The final agreement improves efficiency by promoting paperless trading between businesses and the government. It also provides for electronic authentication and signatures for commercial transactions.
And, for the first time in any free trade agreement, TPP includes provisions ensuring the free flow of data across borders, which is critical to the growth of the digital economy that your companies now depend on to access new markets.
Now that negotiations have concluded, our next step is to make the case for TPP to Members of Congress and the public. At the Department of Commerce, we have released more than 60 targeted fact sheets and reports on the benefits of TPP and conducted outreach to over 500 congressional offices. We are all-in on promoting the benefits of this agreement – but if we’re going to be successful in our efforts, we need your help.
The best argument in favor of trade comes from all of you and your companies – business leaders who understand the real value of trade and exports. There’s a lot of misunderstanding out there about TPP. Much of the debate has not been substantive. It’s been about what happened in the past, not what we need to compete in the future.
That is why we need you to be our partners – to help us make the case for TPP – in your communities, in your states, and nationwide. We need you to be our spokespeople – to talk to your neighbors and other business owners, and put a human face on our trade agenda. We need you to write op-eds in your local papers. We need you to share your successes on your Twitter feed or your Facebook page or any other digital platform.
We need you to make sure your employees understand the potential benefits of TPP on the growth of your businesses. We’re asking you to join us in delivering the message that trade agreements mean lower prices for your consumers, more jobs for your workers, and more growth for our economy.
Looking to the future, our Department is already planning for how we will maximize TPP’s benefits to your companies once the agreement enters into force. Our role is to be your partner in the day-to-day execution of TPP, and we offer a number of services to help your businesses take advantage of the agreement. For example, we have more than 185 foreign commercial service staff in the eleven TPP partner countries who can provide you with on-the-ground assistance.
In addition, the Department of Commerce is responsible for not only the implementation of TPP but also its enforcement. Our team will monitor our new partners’ compliance with TPP and investigate any suspected violations. We can also work directly with your companies to overcome barriers caused by foreign government policies that violate the agreement.
As Secretary Pritzker always says, “our job is to bring new trade agreements to life.” The Trans-Pacific Partnership will be a huge boon to all of your companies once it enters into force, and we stand ready to be your partners as you take advantage of all the opportunities it will create.
But we can’t do it without you. If we’re going to cross the finish line, America can’t just hear impersonal statistics about how great trade is for the economy. The American people need to hear your stories about how trade benefits your businesses. We want to work together, with all of you, to make it easier for all American companies to compete in markets around the world. Thank you.
Source: U.S. Department of Commerce
