TGA Urges U.S. Government to Extend China Tariff Exclusions
On July 28, TGA joined over 160 other organizations in urging Congress to approve legislation that would extend the exclusions from punitive China tariffs for certain travel goods and other items. The exclusions are supposed to expire August 7, 2020.
U.S. Travel Goods Imports Significantly Down in First Five Months of 2020 as Trade Shifts Away from China
According to new data published last week, U.S. travel goods imports (as described under HTS Heading 4202 – luggage, backpacks, flatgoods, handbags, totes, etc.) fell 20.6% (by volume) in the first five months of 2020. In addition to the obvious impact of COVID-19 on the industry, the latest import numbers show the accelerating trend away from China. In the first five months of 2020, U.S. travel goods imports from China fell 38.5%, with China accounting for only 55.8% of total U.S. travel goods imports. For comparison, in 2016, China accounted for 84.7% of all U.S. travel goods imports. Meanwhile, despite the pandemic, U.S. travel goods imports from #2 supplier Vietnam (28.7%), #3 Cambodia (52.1%), and #4 Burma (Myanmar) (230.3%) surged in the first five months of 2020. In fact, U.S. travel goods imports from Vietnam now account for 19.0% of all U.S. travel goods imports, followed by Cambodia at 8.2% of all U.S. travel goods imports. U.S. imports of travel goods account for approximately 99% of the U.S. travel goods market.
U.S. Government Warns Companies of Nexus with China’s Xinjiang Province and Allegations of Forced Labor
Last week, the U.S. government issued a business advisory warning companies to review any nexus their supply chains might have with Xinjiang Uyghur Autonomous Region (XUAR), a province in northwestern China. The business advisory and accompanying letter highlight allegations of forced labor in supply chains with a nexus with XUAR.
TGA Urges Congress to Renew GSP Program, Restore GSP Benefits to India
On July 1, TGA joined over 200 business groups to urge Congress to immediately renew the Generalized System of Preferences (GSP) program, which expires at the end of this year. The letter also called on Congress to restore GSP benefits for India. GSP provides duty-free access for U.S. travel goods imports from most developing countries.
TGA Makes Another Plea to U.S. Government to Create Backstop for Commercial Credit
On July 1, TGA again joined more than 20 other associations in urging the Trump Administration to create an emergency, temporary federal backstop for commercial credit.