From Washington

On July 21, TGA testified before the U.S. International Trade Commission (USITC) at a hearing on the USITC’s investigation into the impact of the China Section 301 tariffs. In its testimony, TGA argued that the 25% punitive China 301 tariffs on U.S. imports of travel goods from China have failed in their goals and have only served to raise costs for American businesses and raise prices for American families. The USITC is expected to publish its report and make recommendations later this year.

On July 15, in response to AAFA’s July 12 letter, President Biden announced the formation of the Presidential Emergency Board (PEB), which will spend the next 30 days holding hearings on the two-year-old stalled rail labor contract negotiations, recommending a new agreement at the end of the 30 days. During those 30 days, neither the railroads nor its 150,000 workers are allowed to engage in work actions. Meanwhile, some sources predict that the two sides in the West Coast port labor contract negotiations will reach an agreement by September with no work interruptions.

On July 8, TGA joined hundreds of organizations in telling the U.S. International Trade Commission (ITC) that the China Section 301 tariffs have not worked and have only hurt American businesses, American workers, and American families, especially at a time of surging inflation.

On July 1, TGA joined 157 groups in urging President Biden to keep the parties to the West Coast port labor contract negotiations at the table until a new deal is reached without engaging in disruptions. The current contract expired July 1. On July 1, the Pacific Maritime Association (PMA) and the International Longshore and Warehouse Union (ILWU) announced, “While there will be no contract extension, cargo will keep moving, and normal operations will continue at the ports until an agreement can be reached…”

This Friday, July 1, the current West Coast port labor contract expires. On June 14, the International Longshore & Warehouse Union (ILWU) and the Pacific Maritime Association (PMA) broke their media blackout with a joint statement saying negotiations continue in good faith but will not be completed by the July 1 expiration of the current contract but “Cargo operations continue beyond the expiration of the contract. Neither party is preparing for a strike or a lockout, contrary to speculation in news reports. The parties remain focused on and committed to reaching an agreement.” However, the two sides did not agree to extend the current contract until a new agreement is reached. TGA is working with others on a multi-industry letter pushing for an indefinite extension of the current contract until a new deal is reached. Members of Congress also continue to weigh in. These efforts build on the June 8 TGA letter urging President Biden to engage in the West Coast port labor negotiations. Many believe the negotiations will turn on the issues of pay and the future of automation at West Coast ports.

On June 14, the International Longshore & Warehouse Union (ILWU) and the Pacific Maritime Association (PMA) broke their media blackout with a joint statement saying negotiations continue in good faith but will not be completed by the July 1 expiration of the current contract. However, “Cargo operations continue beyond the expiration of the contract. Neither party is preparing for a strike or a lockout, contrary to speculation in news reports. The parties remain focused on and committed to reaching an agreement.” On June 14, the ILWU also laid out their concerns in the negotiations. On June 8, TGA joined two other groups in urging President Biden to engage in the West Coast port labor negotiations. Congress has also started to weigh in, with a June 8 Republican letter to President Biden and work happening on a bi-partisan Congressional letter to the ILWU and PMA. Many believe the negotiations will turn on the issues of pay and the future of automation at West Coast ports.

On June 13, the U.S. House of Representatives approved the TGA-supported Ocean Shipping Reform Act of 2022 (S. 3580) by a vote of 369-42. The legislation now goes to President Biden, who is expected to sign the bill into law today, June 16. This bipartisan bill will strengthen the overseas supply chain and ensure fairness in the global ocean shipping industry by bolstering the Federal Maritime Commission (FMC), the U.S. government agency that oversees ocean carriers, and requiring the FMC establish and enforce rules to prevent excessive and unjust detention and demurrage fees and stop refusal/denial of service. These commonsense reforms will be instrumental in combatting the current shipping crisis and preventing the next shipping crisis.

Over the last few months, dozens of new California Proposition 65 (Prop 65) “60-day” notices have been issued alleging that brands and retailers sold luggage (Notice 1), totes (Notice 1), backpacks (Notice 1, Notice 2, Notice 3, Notice 4), handbags (Notice 1, Notice 2, Notice 3, Notice 4, Notice 5, Notice 6, Notice 7), fanny packs (Notice 1), smartphone case (Notice 1), wallets (Notice 1, Notice 2, Notice 3), and travel/garment cases/messenger/crossbody/carry bags (Notice 1, Notice 2, Notice 3) in California that contained di (2-ethylhexyl) phthalate (DEHP), Bisphenol A (BPA), Di-n-butyl phthalate (DBP), or diisononyl phthalate (DINP) in violation of a California law known as Proposition 65 (Prop 65). The notices serve as intent to bring lawsuits against the companies that made and sold these products. Check out TGA’s member-only California Proposition 65 (Prop 65) Best Practices Guidance on the Prop 65 page on the TGA website at https://www.travel-goods.org. This member-only guidance details best practices in developing your company’s Prop 65 testing and warning label protocol, including recommendations on which warning label text to use, where to place the warning label text, and how to test for Prop 65 listed chemicals in your products. For more information on Prop 65, please contact TGA’s Nate Herman, nate@travel-goods.org, 301-775-7633.

Every day, our industry faces a shipping crisis that has delivered us contract breaches, stubbornly high shipping rates, excessive and unjust fees, constant delays, and ongoing uncertainty on whether our product will ever arrive or even be moved. We are an industry of small companies who have no bargaining power with the big foreign-owned ocean carriers we rely on to move our product. This reality has translated into empty store shelves and much higher prices at the cash register, spurring inflation to historic levels. And that shipping crisis is now driving rampant inflation, which further threatens travel, and our industry. But there is hope. READ MORE

On June 6, TGA urged Congressional conferees working to reconcile the House and Senate versions of competitiveness/anti-China legislation to ensure any final legislation includes key U.S. travel goods industry priorities, including renewal of the Generalized System of Preferences (GSP) program, passage of the Ocean Shipping Reform Act, and restart of the China Section 301 tariff exclusion process. Congressional leaders hope to reach agreement on a final competitiveness bill by July 4, although that timeline could slip.