USITC report makes good reading for US footwear
20/05/2016
The report predicted that the US would see an increase in footwear imports from TPP nations of $1.6 billion (23.4%). Vietnam would be the primary source of this increase, which would come at the expense of China who would see US footwear imports fall by more than $400 million (1.3%) as a result of TPP.
“We are excited that the USITC released the report on the likely economic impact of the Trans-Pacific Partnership. The report reaffirms the significant positive impact that this historic free trade agreement will have on the US footwear industry and the US economy - while not negatively affecting U.S. footwear production,” said Footwear Distributors and Retailers of America (FDRA) president Matt Priest.
The report indicated that US-manufactured footwear would not be negatively impacted by the increase of imports. The USITC estimated that US-made footwear would grow by 0.5%, partly due to a reduction in Japanese tariffs and access to new markets.
“TPP is a once-in-a-generation opportunity for footwear companies and consumers, generating $500 million in savings for the industry the first year of implementation alone and $6 billion over the first decade,” Mr Priest added.
The report predicted modest gains for the US economy overall. GDP would be expected to grow $42.7 billion (0.15%) by 2032 once countries committed to the deal implemented the proposed tariff reductions.
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