WASHINGTON, D.C. – Today, U.S. Senators Susan Collins and Angus King sent a letter to President Obama urging him to support the domestic footwear manufacturing industry as negotiations for the Trans-Pacific Partnership (TPP) continue this week in Lima, Peru.

In the letter, also signed by Senators Shaheen, Warren, Cowan, and Pryor, they request that the President exclude from TPP negotiations any consideration of eliminating or phasing out duties for sensitive products of the domestic rubber and plastic footwear manufacturing industry.  Eliminating or reducing these duties would give foreign competitors with low hourly wages an unfair advantage over domestic footwear manufacturers, such as New Balance in Maine, and jeopardize thousands of good-paying manufacturing jobs in America.

Currently, the United States, Brunei, Chile, New Zealand, Singapore, Australia, Peru, Vietnam, Malaysia, Mexico, Canada, and Japan are participating in the trade negotiations.  The Obama Administration has set a goal of completing negotiations in 2013.   

"Maine has a proud tradition of shoemaking, and the men and women who work at the three New Balance factories in our state are part of that legacy," Senators Collins and King said in a joint statement. "With innovation, superior customer service, and a strong commitment to its workers, New Balance is symbolic of the promise of American manufacturing.  It is critical that our negotiators in the TPP avoid any strategy that uses footwear as leverage in negotiations."

"We want to thank Senator Collins, Senator King and their colleagues for their robust support," said Matt LeBretton, Vice President of Public Affairs for New Balance. "This is a very simple issue for the more than 1,350 shoe manufacturers at New Balance and for the rest of our industry, and that is to keep footwear manufacturing jobs here in the United States. The Administration has the future of this industry in its hands, and we are hopeful that the President and his advisors will preserve these jobs."

The letter can be viewed here. Below is the text of the letter:

Dear Mr. President:

As negotiations for the Trans-Pacific Partnership Agreement (TPP) continue and the negotiating agenda turns toward addressing sensitive products, such as footwear, we would like to express our strong support for negotiation objectives that will enable the continued operation of rubber and plastic footwear manufacturing in the United States.  This issue has become increasingly important this year, given the Administration's stated goal of completing TPP negotiations in 2013. 

Elimination or phase out of duties for core products of the domestic rubber and plastic footwear manufacturing industry would give imports from footwear-producing countries with low hourly wages, such as Vietnam, an overwhelming competitive advantage that would severely threaten production and employment in this country, particularly in Maine, Massachusetts, New Hampshire, and Arkansas.  These duty rates have remained in place over the course of several rounds of trade negotiations, and our government has consistently recognized that they level the playing field and in combination with the innovation of our manufacturers at home - they preserve American jobs. 

Consequently, we urge you to exclude from TPP negotiations any consideration of eliminating or phasing out duties on the footwear tariff lines that have been deemed sensitive by interested stakeholders.  In short, we ask that you exclude these products entirely from the negotiations.  There have been exceptions made for sensitive products in the context of past free trade agreement (FTA) negotiations.  In the last twelve years, the United States or its partners have agreed to exclude:  (1) tobacco in the Jordan FTA (2001); (2) sugar in the Australia FTA (2005); and (3) rice in the FTA with South Korea (2007).  Similarly, the United States should exclude those footwear tariff lines deemed sensitive - and thereby protect more than 4,000 jobs across the country.      

As you said in the State of the Union earlier this year, "our first priority is making America a magnet for new jobs and manufacturing."  Our states have a long tradition of making manufacturing jobs a priority and footwear manufacturing is an important part of this tradition.  Due to the domestic footwear industry's innovation, superior customer service, and a strong commitment to the American worker and manufacturing, our constituent companies have been able to maintain domestic production despite strong overseas competition.  However, these jobs depend on the continuation of tariffs on sensitive tariff lines.  It is critical that our trade negotiators avoid any negotiating strategy of using footwear as leverage in trade negotiations that could ultimately result in the loss of footwear manufacturing jobs here in the United States.

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