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NCTO opposes efforts to remove tariffs on finished items

Mar '20
Pic: Shutterstock
Pic: Shutterstock
Welcoming the US administration’s proposals on an economic stimulus package to gird the economy against the impact of the coronavirus outbreak, the National Council of Textile Organisations (NCTO) recently urged officials in a statement to reject any attempts by importers to remove China 301 tariffs on finished products as part of any relief package.

“The president has outlined the need for a broad economic stimulus package that would include various tax incentives to help impacted industries and workers. We support the administration’s efforts to bolster the economy as a response to the coronavirus outbreak, while opposing add-ons to any stimulus package designed to exploit the crisis,” said NCTO president and chief executive officer Kim Glas.

“Any push by importers and retailers to take advantage of the situation and press for removing China 301 tariffs on finished consumer goods—a penalty imposed by the administration in a separate investigation of China’s illegal intellectual property (IP) abuses—should be rejected immediately,” she said.

“Tariff breaks on finished products will only pad the pockets of retailers that have long benefitted from China’s trade abuses, and ultimately will not be passed on to the consumer,” Glas said.

“Granting importers a tariff break would essentially let China off the hook for systemic IP violations that have displaced US workers and undermined US leverage in negotiating a phase two agreement,” Glas added.

As part of a Phase One deal with China, the administration reduced duties on finished apparel and textile products implemented on September 1 from 15 per cent to 7.5 per cent.

Fibre2Fashion News Desk (DS)

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March 2020

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