Footwear industry, lawmakers call for reduction of tariffs in Asia-Pacific trade deal

A bipartisan group of more than two dozen lawmakers are pressing U.S. officials to reduce tariffs on footwear as part of an Asia-Pacific trade deal. 

In a letter sent Tuesday to U.S. Trade Representative Ron Kirk, 27 lawmakers say high tariffs for footwear headed to the United States are weighing on the growth of the industry that has moved mostly offshore, including to Vietnam, which is part of the Trans-Pacific Partnership (TPP). 

"Footwear tariffs are among the highest in the U.S. tariff schedule despite that less than 1 percent of footwear sold in the in U.S. is produced here, and the footwear that is produced here is largely manufactured with imported components that are duty-free or subject to very low duties," the letter said. 

The Footwear Distributors and Retailers of America (FDRA) and the Retail Industry Leaders Association (RILA) applauded the letter, saying reduced tariffs in the TPP would support high-value design, engineering and marketing jobs in the footwear industry.

"These negotiations provide the ideal opportunity to reverse the costly trade policies that are adversely impacting U.S. companies, such as the footwear industry, which will ultimately help grow the U.S. economy and benefit domestic consumers.”

 Rep. Earl Blumenauer (D-Ore.) said on Tuesday. 

“Innovative companies in Oregon have helped double the Portland region’s exports over the past decade to more than $21 billion," he said. 

"As the U.S. explores new trading relationships across the Pacific, we have an opportunity to support these companies as they create the high skill, high wage jobs our community needs for the future as well as provide consumers with increased choice and value.”

On the other hand, New Balance, the last manufacturer of athletic shoes in the United States has pressed for some tariffs to remain in place that they say without could force them to close their remaining factories in New England. 

Matt Priest, president of FDRA, said 

the footwear industry is under severe cost pressure as raw materials and transportation expenses have increased and are facing tariffs designed for a 1930s economy. 

"Eliminating these outdated tariffs on shoes would help keep shoes more affordable and allow investment in the research and development that drives U.S. competitiveness,” Priest said. 

"
Specifically, the association is seeking immediate elimination of outdated tariffs, a competitive rule of origin, predictability, intellectual property protection, fair and open distribution rights and efficient trade flows," he said. 



Blake Krueger, chairman of FDRA, hailed the letter, saying, “300,000 Americans rely on the design, marketing, distribution and sales jobs of the 21st century footwear industry."

"Given the importance of this issue for American workers and consumers, it is significant that this letter is not only bipartisan, but that it represents members from every region of the country," Krueger said. 

The letter to Kirk was spearheaded by Reps. Aaron Schock (R-Ill.) and Blumenauer and was signed by Reps. John Barrow (D-Ga.), Judy Biggert (R-Ill.), Diane Black (R-Tenn.), Marsha Blackburn (R-Tenn.), Paul Broun (R-Ga.), Suzanne Bonamici (D-Ore.), Charles Boustany (R-La.), Fransisco Canesco (R-Texas), Stephen Cohen (D-Tenn.), David Dreier (R-Calif.), Chuck Fleischmann (R-Tenn.), Mike Kelly (R-Pa.) Wally Herger (R-Calif.), Lynn Jenkins (R-Kan.), Billy Long (R-Mo.), Greg Meeks (D-N.Y.), Erik Paulsen (R-Minn.), Jared Polis (D-Colo.), Charles Rangel (D-N.Y.), Dave Reichert (R-Wash.), Peter Roskam (R-Ill.), Kurt Schrader (D-Ore.), Adrian Smith (R-Neb.), Edolphus Towns (D-N.Y.), and Greg Walden (R-Ore.).