New Balance pushes US to keep footwear tariffs
14/09/2012
New Balance is one of the only brands to manufacture footwear in the US – it employs 1,350 out of the 3,000 total workers – and its management is worried about its ability to compete if the proposals are passed.
“Vietnam, which already imports a significant amount of shoes in the country, would have an advantage against those factories,” said New Balance CEO Robert DeMartini. “It would be very difficult to keep them competitive.”
Company spokesman Matt LeBretton said New Balance wants Washington to maintain tariffs on 20 categories of athletic shoes from Vietnam.
The proposed Trans-Pacific Partnership covers the US, Vietnam and nine other countries in the region, and the 14th round of negotiations are under way this week in Virginia. It is not likely to come into force until at least next year.
A second US trade official said the US generally seeks to eliminate all tariffs in trade agreements, but has responded to industry concerns in the past with long phase-out periods and trade-adjustment help.
LeBretton said they were hopeful after Ron Kirk’s visit."We're certainly encouraged by his visit that they are hearing what we say," he said.
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