Today, U.S. Deputy Secretary of Commerce Bruce Andrews delivered remarks at the 2016 Footwear Distributors and Retailers Association (FDRA) Executive Summit. During his remarks, Deputy Secretary Andrews stressed the importance of the Trans-Pacific Partnership (TPP) and how the trade agreement would ensure our nation’s competitiveness in the 21st century global economy.
The Department of Commerce has been working with the FDRA to educate businesses, workers, and consumers on the benefits of trade. Currently, the FDRA is the oldest and largest footwear trade association, representing more than 100 companies and over 200 brands.
Remarks as Prepared for Delivery Thank you. It is a pleasure to be here. I’m here today to talk with you about the importance of trade for America’s footwear industry, the workers it employs, and our broader economy.
I know you all understand the benefits of trade better than anyone. The Footwear Distributors and Retailers Association has been a crucial ally of the Obama Administration’s trade agenda and especially, the Trans-Pacific Partnership. So on behalf of Secretary Pritzker and the entire team at the Department of Commerce, thank you for your continued commitment to trade and the jobs it helps support.
I know your commitment to global trade and economic growth is not new. It stretches all the way back to this organization’s founding in 1944. Beyond representing iconic brands, America’s footwear industry represents one of our economy’s greatest success stories.
In the aftermath of the Great Depression and World War II, your companies helped create jobs, drive growth, and build the largest and most prosperous middle class ever known. Today, FDRA represents over 120 companies and 250 brands. Yet it remains the only trade organization focused solely on footwear. And your commitment to trade is stronger than ever.
I may not be a fashion expert, but I thank you for helping bring free trade back in style.
The footwear companies and retailers represented by FDRA have been deeply engaged in the Trans-Pacific Partnership from the start. Throughout the negotiation process, you shared insights on how TPP could help your industry compete in new markets. You fought for Trade Promotion Authority last summer. And now, you are working to ensure we pass this important trade agreement.
The Department of Commerce shares your commitment to expanding trade and ensuring American companies can compete on a level playing field. As Deputy Secretary, I’ve had the great fortune to travel the country and around the world.
I’ve spoken with business leaders in every sector about trade barriers they face abroad and how we can overcome them. And I’ve seen firsthand how trade has helped America bounce back from a crippling recession. Strong trade agreements like the Trans-Pacific Partnership will make it easier for business to ship goods and services around the world.
At the same time, it gives the United States an opportunity to advance our values. TPP will raise the bar for human rights, environmental protection, and so many other issues important to the American people.
Now, I know this organization understands how critical TPP is for America’s footwear industry. This deal addresses challenges that you face in markets around the world.
Take Vietnam for example. Vietnam is the United States’ second largest source of footwear imports. In 2015, we imported over $4.3 billion in shoes from Vietnam. During that time, importers paid over $509 million in import duties. This is a cost borne directly by consumers. This also increases costs for American companies who source shoes from Vietnam, from Nike to Wolverine.
We have a similar issue with Japan. Your exports like leather footwear are in demand. Yet leather products are hindered by high tariffs – some as high as 189%.
This agreement will lower costs for American companies and consumers. For example, TPP will cut duties on nearly all originating footwear from Vietnam on day one, saving $450 million in the first year alone.
When it comes to Japan, TPP will also break down barriers. Under this agreement, Japan will immediately eliminate the quota on leather footwear and begin to phase out all remaining tariffs. Ultimately, 85 percent of footwear products coming into the United States will be immediately duty free under TPP.
Those savings will benefit your customers, promote more investment in our economy, and help create new jobs here at home.
Simply put: TPP is the most commercially significant free trade agreement for footwear ever. We must work together to see it implemented.
As we work to move TPP across the finish line, the Department of Commerce is already working to maximize its benefits for companies like yours. Our role is to be your partner throughout TPP’s implementation so that your businesses can take advantage from day one.
That’s why we already have 185 foreign commercial service staff ready to serve you in all eleven TPP partner countries. And that’s why we are working not only to implement TPP but also to enforce TPP.
Our trade enforcement team will monitor and measure compliance of our partners’ promises outlined in TPP. We will investigate any suspected violation. We will seek strict compliance from foreign governments. And we will work to make sure our TPP partners not only agree to this proposal but uphold its policies.
The negotiations have ended. The enforcement infrastructure is in place. What we need now is to make our case to the American people.
The Department of Commerce and our partners throughout the Obama Administration are working hard to get the facts out there. We have reached out to nearly every member of the Congress. We have held events throughout the country. And we have released more than 60 fact sheets highlighting the opportunities made possible through TPP.
Our Department has engaged in many ways. Now is where you come in. You have an important story to tell. The Members of Congress who represent the communities where you do business are far more likely to listen to you than anyone else.
As you walk the halls of Capitol Hill and meet with elected representatives, please know that the Department of Commerce appreciates your efforts.
We have heard many misconceptions about TPP. Much of what’s been said lacks substance. Too often, opponents focus on the past, instead of what we need to stay competitive in the future.
We need you to share the facts about TPP – not just in Congress but in your communities. So talk to your customers, your employees, and your business associates. Write your local newspapers and set the record straight. Share your stories on social media about why you are advocating for free trade.
After all, the best arguments for trade agreements like TPP come from the American businesses and workers that will benefit from it each and every day.
We stand ready to be your partner to help you take advantage of this important deal. The Trans-Pacific Partnership will spur greater investment in our economy and help businesses of all sizes compete in some of the world’s fastest growing markets.
Doing so will help us build on our recent economic gains. Last month extended the longest streak of private-sector job growth to 74 straight months. But we are not content to rest on our past achievements. We must keep moving forward. We must implement and enforce new, 21st century trade deals so that American companies can compete in today’s 21st century economy.
By making your voices heard and ensuring your stories are told, we can turn TPP from an idea into a reality. Thank you for your efforts and for your time. Now, I am happy to take questions about TPP or any other issues on your mind.
Source: U.S. Department of Commerce
