WASHINGTON, D.C. – In a recent letter, U.S. Senator Angus S. King (I-Maine) strongly urged United States Trade Representative Ron Kirk to maintain current trade protections that are critical to the economic viability of New Balance in Maine.  Senator King specifically asked Ambassador Kirk to forego any discussion during the Trans Pacific Partnership negotiations of ending rubber and plastic footwear tariffs because of the potentially catastrophic result it could have for New Balance and its employees.  The current tariffs level the playing field with countries such as Vietnam and China where wages are approximately ten percent of that of U.S. workers and where manufacturers do not have to comply with strict business, labor, and environmental regulations. 

“There could not be a worse time to discuss the elimination of these tariffs, which would likely result in the elimination of 4,000 domestic jobs, most of which are in rural communities with few other employment options,” wrote Senator King.  “I am urgently requesting, on behalf of the men and women of New Balance, that these negotiations be put on hold until our economy strengthens, and further, I believe that the idea of dropping this vital protection for American jobs should be put on hold indefinitely.”

“I am aware that you also visited the New Balance facility and I appreciate the challenges you face.  As you are weighing the competing interests in this case, please consider those hard working Maine people that you and I both met.  These families are totally dependent upon your decision.”  

Senator King visited the New Balance factory in August 2012 before assuming office while Ambassador Kirk visited the facility in September 2012. It remains the only domestic athletic shoe manufacturer in the United States.

A copy of the complete letter is below.

January 16, 2013

The Honorable Ron Kirk
Ambassador
United States Trade Representative
600 17^th Street NW
Washington, DC 20508

Dear Ambassador Kirk:

This is all about jobs.

Last August, I toured the New Balance factory in Skowhegan Maine, and met many of the 400 workers and managers.  The people I talked to are proud of their work creating high quality athletic shoes. They know that in a rural county with a consistent 10% unemployment rate good jobs are scarce. And, they are looking to the federal government to maintain reasonable trade policies to allow them to compete fairly in a global market where quality is the deciding factor of success.

New Balance is the only domestic manufacturer of athletic shoes in the US and its  manufacturing facilities in Maine are critical to our local economy. The company employs more than 900 people in Maine at three different factories.  When the other manufacturers and the suppliers are included, nearly four thousand across the country are at stake.

I left that day determined that one of my top priorities, if elected, would be to do everything in my power to assure that our trade policies would encourage job creation here at home and at least gives us the hope of fair competition.  As I mentioned in my letter to you of August 15, 2012, I believe that trade is essential to both the Maine and national economy. However, in a world where living standards and regulations are not equal, it falls to the governments to identify inequities and develop agreements that create both opportunity and fairness.  Free trade is not fair trade if we are not being fair to our domestic workforce and businesses.

I am writing in advance of the next round of Trans Pacific Partnership (TPP) talks to urge the continuation of the 24 tariffs in the Harmonized Tariff Schedule (HTS) that affect rubber and plastic footwear. The urgency of this situation is based on the desire of the negotiators to complete the talks in 2013 and the very soft and tenuous recovery of the U.S. economy.  There could not be a worse time to discuss the elimination of these tariffs which would likely result in the elimination of 4,000 domestic jobs, most of which are in rural communities with few other employment options.

The TPP includes Vietnam, which is second only to China as an exporter of athletic shoes to the U.S.  The HTS tariffs provide a reasonable balance between the costs of making shoes in Vietnam where wages are less than 10% of the wages of U.S. workers. In addition, New Balance and its domestic suppliers must comply with strict business, labor and environmental regulations.   I have long believed that free trade agreements must also be fair--and that countries with little or no labor or environmental protections should not be given free access to our markets.  

In this specific case, it is clear that the tariffs have not unfairly impacted production in Vietnam. During Round 15 of the TPP talks in Auckland NZ, it was announced that the U.S. trade deficit with Vietnam rose 21% during the first 11 months of 2012 to 13.54 billion USD.  Much of that came from the sale of textile, footwear and apparel - the areas where the Vietnamese claim they need market access relief. 

I am urgently requesting, on behalf of the men and women of New Balance, that these negotiations be put on hold until our economy strengthens, and further, I believe that the idea of dropping this vital protection for American jobs should be put on hold indefinitely.                                                               

I am aware that you also visited the New Balance facility and I appreciate the challenges you face.  As you are weighing the competing interests in this case - please consider those hard working Maine people you and I both met. These families are totally dependent upon your decision.

I hope you will reach the same conclusion that I have – that a priority position of the United States in these talks will be to support 4,000 real jobs in struggling rural communities.  Further, that New Balance, or any other company that makes a commitment to their workers, their communities and the continuation of a domestic manufacturing sector will be considered an essential asset to the U.S. economy and have an advocate and partner in this process.

As you can no doubt tell, I could not feel more strongly about this and am urgently seeking your help. Please contact me if I can provide further information to assist in your deliberations.

Sincerely,

Angus S. King, Jr.

United States Senator

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