The Issue:

During 2006, Congress cleared two separate measures containing miscellaneous trade and tariff measures, including duty suspensions on a range of interests to AAFA members relating to apparel, footwear and textile components.  These bills included the pension bill (H.R. 4) that was signed by President Bush in early August 2006 and the omnibus trade bill (H.R. 6406) that was signed by President Bush in December 2006.   It is unclear how the MTB process will fare in 2007 and beyond.  Concerns over earmarks benefiting corporations has ensnared the MTB process as well, leading to a series of transparency and procedural reforms that may make Congress reluctant to take action on an MTB in the coming year.

AAFA on the Issue:

AAFA strongly supported Congressional approval of both measures.   AAFA will work to ensure that these provisions meet the needs of AAFA’s members.  AAFA supports the continued use of the MTB process to seek duty suspensions and reductions. (See AAFA News Release)

The Latest News:

06.23.08
The World Bank has published its World Trade Indicators 2008, a broad collection of trade-related data and analyses covering over 200 countries. Significantly, the report highlights the clear connection between lower tariffs and increased trade over the last decade. In general, developed countries have lower tariff rates than developing countries, but textiles and apparel tend to have substantially higher tariffs across the board. Textile and apparel tariffs are particularly high in developed countries, reflecting the political sensitivity to these industries. As a consequence, apparel exporting countries have relatively less favorable market access than countries centered on other exports.

11.05.07
The House Ways & Means Committee requests submissions of bills by December 14 for consideration and possible inclusion in the next Miscellaneous Trade Bill (MTB). The primary purpose of the MTB is to help US manufacturers and importers compete at home and abroad by temporarily suspending or reducing duties on intermediate and finished products or materials that are not made domestically and where there is no domestic opposition (i.e. non-controversial). Over two dozen provisions on footwear, textile and apparel were included in the Miscellaneous Trade Bill approved in the last Congress in December 2006. That bill temporarily eliminated or reduced duties on imports of over two dozen specific types of footwear and about a half dozen types of textile and apparel (See AAFA Analysis of 2006 MTB).

10.31.07
Congress is expected to start the Miscellaneous Trade Bill (MTB) process during the last few months of 2007.