Published Date : Oct 29, 2015
If the participant countries agree to implement the Trans-Pacific partnership (TTP) business agreement in the next two years, footwear importers would gain millions of dollars in yearly duties, stated Mr. Matt Priest, the president of the Footwear Distributors and Retailers of America (FDRA).
Singapore, New Zealand, Brunei, Chile, Australia, the U.S., Peru, Malaysia, Vietnam, Mexico, Japan, and Canada are the twelve countries that are participating in TTP. The president further added that the TPP is expandable and other countries, exporting footwear, could also join the partnership in future.
The participation of Vietnam in this trade agreement is expected to provide the highest immediate gains to footwear importers as this country is the second largest footwear exporter to the U.S. after China. 2.3 bn pairs of shoes were imported to the U.S. in 2014, wherein the industry paid US$2.7 bn just in duties on footwear. According to the stats provided by FDRA, the U.S. footwear industry accounts for only 1% of overall imports in the U.S. but pays off 8% of total import duties.
The rising significance of Vietnam as a footwear manufacturer is presenting a lucrative opportunity for footwear importers. The overall import duties paid on all the products exported from Vietnam were US455 mn in 2014. As of now, the increasing labor cost in China has rung the bell and footwear production is likely to shift its direction towards Vietnam. Mr. Priest has appealed all the participating countries to ratify the TTP, which is projected to arrive on the floor in the first quarter of 2016