Withdrawal of the United States From the Trans-Pacific Partnership Negotiations and Agreement

Memorandum for the United States Trade Representative, Monday, January 23, 2017

It is the policy of my Administration to represent the American people and their financial well-being in all negotiations, particularly the American worker, and to create fair and economically beneficial trade deals that serve their interests. Additionally, in order to ensure these outcomes, it is the intention of my Administration to deal directly with individual countries on a one-on-one (or bilateral) basis in negotiating future trade deals. Trade with other nations is, and always will be, of paramount importance to my Administration and to me, as President of the United States.

Based on these principles, and by the authority vested in me as President by the Constitution and the laws of the United States of America, I hereby direct you to withdraw the United States as a signatory to the Trans-Pacific Partnership (TPP), to permanently withdraw the United States from TPP negotiations, and to begin pursuing, wherever possible, bilateral trade negotiations to promote American industry, protect American workers, and raise American wages.

You are directed to provide written notification to the Parties and to the Depository of the TPP, as appropriate, that the United States withdraws as a signatory of the TPP and withdraws from the TPP negotiating process.

CPSC to Attend ASTM Meeting on Textiles

Paige Witzen, Consumer Product Safety Commission Directorate for Laboratory Sciences, will be attending ASTM International Committee Meetings, D-13 on Textiles, Norfolk Waterside Marriott; Norfolk, Virginia on January 29, 2017. For more information contact Paige Witzen, 301-987-2029 or ASTM International at www.astm.org

Pass That Peace Pipe

"If you're feeling mad as a wet hen,
Mad as you can possibly get, then
Pass that peace pipe, bury that tomahawk…"
--Roger Edens, Hugh Martin, and Ralph Blane, "Pass That Peace Pipe," from the 1947 motion picture "Good News"

Mary and I are in Washington, D.C., for the inauguration of Donald J. Trump as 45th President of the United States on Friday, January 20th. [Trivia QUIZ: Mr. Trump will be the 44th man to service as President, why is he numbered as the 45th?]

Here we are interviewed on Boston Channel 7 WHDH News yesterday -- http://whdh.com/news/new-englanders-head-to-dc-for-inauguration-and-protests/

The theme of the 58th Presidential Inauguration, "Uniquely American," recognizes the symbolic importance of the event. We may consider it routine, but the inaugural ceremony remains a uniquely American expression of our constitutional system. The peaceful transition between presidential administrations signals that we are united as a people behind an enduring republic.

Sadly, America is not likely, in the near future, to be united behind the man who will hold her highest office for the next four (maybe eight) years. My hope is that President Trump succeeds in fixing our economy so that it works for all Americans. If he fails, voters can hand control of Congress over to the Democrats in 2018, thus limiting his ability to act domestically. In 2020 they can turn him out of office. If he succeeds in his first term he likely will be re-elected by a larger margin and sweep more Republicans into Congress too.

No matter what happens nationally, Massachusetts, of course, will continue to be a deeply Blue State. The dysfunctionality of the Massachusetts Republican Party will ensure that! The latest news, reported in the Boston Herald, is that Bay State Trump supporters say the State GOP appears to be failing to get them inauguration tickets. I have had enough experience of the Mass GOP to know better than to waste my time trying to get tickets through that [dis]organization. My Congressman, Stephen Lynch, came through for us with tickets. Senator Ed Markey also offered Mary tickets, which she released to the next person on the waiting list.

Representative Lynch's office also gave me United States Capitol Historical Society calendar with the theme of Celebrating the Era of Good Feelings," 1817-1825.

The Era of Good Feelings marked a period in the history that reflected a sense of national purpose and a desire for unity among Americans following the War of 1812. The era saw the end, for a time, to bitter partisan disputes. President James Monroe strove to downplay partisan affiliation in making his nominations, with the ultimate goal of national unity and eliminating parties altogether from national politics.

The phrase Era of Good Feelings was coined by Benjamin Russell, in the Boston newspaper, Columbian Centinel, on July 12, 1817, following Monroe's visit to Boston, Massachusetts, as part of his good-will tour of America.

Best wishes for success to President Trump. May he make America GREAT and UNITED again!

[ANSWER to QUIZ: Grover Cleveland is counted twice as our 22nd and 24th President because he was elected for two nonconsecutive terms.]

CPSC News

On January 26, 2017, The U.S. CPSC, Health Canada, and Profeco are hosting a joint trilateral webinar to provide industry stakeholders, including manufacturers, importers, and exporters of general clothing, sleepwear, and textile products, with an overview of the relevant product safety requirements in the U.S., Canada, and Mexico. REGISTER HERE.

On January 24, 2017, Andrew Lock, Ph.D., Directorate for CPSC Laboratory Sciences, and other CPSC staff meeting with Kurt Reimann, Ph.D., Kurt Reimann & Assoc., Inc., Munjal Patel, Polyurethanes, ICL-IP, Stanislav Stoliarov, Ph.D., Associate Professor in the Department of Fire Protection Engineering, University of Maryland, and Peter Senez , Jensen Hughes to discuss their recent research on upholstered furniture flammability and fire science.

Customs Again Delays of Effective Date for Manditory Automated Commercial Environment ("ACE") Filing for Drawback and Duty Deferral Entry and Entry Summary Filings

On August 30, 2016, U.S. Customs and Border Protection ("CBP") published a notice in the Federal Register announcing plans to make the Automated Commercial Environment ("ACE") the sole electronic data interchange ("EDI") system authorized for processing electronic drawback and duty deferral entry and entry summary filings. The changes announced in that notice were to have been effective on October 1, 2016. On October 3, 2016, CBP published a notice in the Federal Register announcing that the effective date for the transition to ACE as the sole CBP-authorized EDI system for electronic drawback and duty deferral entry and entry summary filings would be delayed until further notice. On December 12, 2016, CBP published a notice in the Federal Register announcing that the effective date for the transition would be January 14, 2017. A Notice in the January 17, 2017, Federal Register further postpones the effective date for the transition has been delayed until further notice.

On January 11, 2017, as required by the American Manufacturing Competitiveness Act of 2016, the U.S. International Trade Commission published on its website the petitions for duty suspensions and reductions that were timely filed and contain the required information, and the Commission is requesting members of the public to submit comments to the Commission on the petitions published no later than the close of business February 24, 2017. Agathon Associates can assist you in filing objections to petitions.

Some Duty Suspension Petitions Relating to Woven Fabric

493 Product: Woven fabrics of certain sythetic fibers

HTSUS: 5512.99.00

Petitioner: Milliken & Company
Full discription: Woven fabrics of synthetic staple fibers, containing 85% or more by weight of synthetic fibers, containing 85% vinal (polyvinyl alcohol) staple fiber and 15% polynosic rayon fiber (provided for in subheading 5512.99.00)

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2650 Product: Woven fabrics of man-made fiber

HTSUS: 5903.20.25

Petitioner: Pangaea Ltd. dba Feathered Friends
Filer: Cardinal Trade Associates
Full discription: Woven ripstop fabrics of man-made fibers, of a type described in subheading 5903.20.25, of a weight between 71 and 75 g/m2, laminated, and a yarn density of 30 denier, constructed of 24 filaments, woven to a width of between 139 to 145 centimeters

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2651 Product: Woven fabrics of man-made fiber

HTSUS: 5903.20.25

Petitioner: Pangaea Ltd. dba Feathered Friends
Filer: Cardinal Trade Associates
Full discription: Woven ripstop fabrics of man-made fibers, of a type described in subheading 5903.20.25, of a weight between 27 and 31 g/m2, and a yarn density of 10 denier, constructed of 7 filaments, woven to a width of between 139 to 145 centimeters

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2653 Product: Woven fabrics of man-made fiber

HTSUS: 5903.20.25

Petitioner: Pangaea Ltd. dba Feathered Friends
Filer: Cardinal Trade Associates
Full discription: Woven ripstop fabrics of man-made fibers, of a type described in subheading 5903.20.25, of a weight between 53 and 57 g/m2, and a yarn density of 15 denier, constructed of 7 filaments, woven to a width of between 139 to 145 centimeters

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2672 Product: Woven fabrics of man-made fiber

HTSUS: 5903.20.25

Petitioner: Pangaea Ltd. dba Feathered Friends
Filer: Cardinal Trade Associates
Full discription: Woven ripstop fabrics of man-made fibers, of a type described in subheading 5903.20.25, of a weight between 39 and 43 g/m2, and a yarn density of 20 denier, constructed of 20 filaments, woven to a width of between 139 to 145 centimeters

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1278 Product: 74' 5 oz white ibex fabric

HTSUS: 5210.21.40

Petitioner: Beck's Classic Mfg. Inc.
Full discription: 74 inch width 80/20 cotton/poly 5 oz,Ibex white

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1292 Product: 74' width 4 oz woven 100% cotton birdseye fabric

HTSUS: 5208.29.20

Petitioner: Becks Classic Mfg. Inc.
Full discription: 74 inch width 100%cotton woven 4 oz white birdseye fabric

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1297 Product: 74' width 4oz 52%cotton/48%poly Twill

HTSUS: 5210.29.10

Petitioner: Beck's Classic Mfg. Inc.
Full discription: 5210.29.10 74 inch width 4 oz (136gsm) 52%cotton/48% poly twill

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1298 Product: 74' width 5.8 oz 100% polyester MJS

HTSUS: 5512.11.00

Petitioner: Beck's Classic Mfg. Inc.
Full discription: 5512.11.0010 74 inch width 5.8oz(195gsm) 100% poly MJS

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1301 Product: 74' width 50/50cotton/poly T-130 dyed sheeting

HTSUS: 5210.31.40

Petitioner: Beck's Classic Mfg. Inc.
Full discription: 5210.21.31.4000 74 inch width 3oz(102gsm) woven 50/50 cotton/polyester T-130 dyed sheeting

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2395 Product: Unbleached crimped cotton woven fabrics

HTSUS: 5208.11.40

Petitioner: American Fiber & Finishing, Inc.
Full discription: Three-plied crimped (crinkled) woven fabrics, wholly of cotton, unbleached but scoured, of yarn numbers 43 to 68, with widths of 60 cm or more but not over 90 cm (measured in the unplied status), such fabrics presented in a Z-folded state and put up in rolls with widths of 20 cm or more but not over 30 cm (measured in the plied status), each roll either continuous or comprising fabric pieces of various counts and lengths positioned in an overlapping configuration (provided for in subheading 5208.11.40)

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2399 Product: Cotton Woven Greige Fabric

HTSUS: 5208.11.40

Petitioner: American Fiber & Finishing, Inc.
Full discription: Unbleached greige woven fabrics, wholly of cotton, of yarn numbers 43 to 68, put up in continuous rolls with widths of not less than 74 cm or more but not over 184 cm of varying lengths ranging from 450 to 3300 meters (provided for in subheading 5208.11.40)

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2462 Product: Bleached Cotton Gauze Sponges

HTSUS: 5208.21.40

Petitioner: American Fiber & Finishing, Inc.
Full discription: Eight or Twelve Plied bleached woven fabrics, wholly of cotton of yarn numbers 43 to 68, measuring (as imported in plied state) in length between 8.5 and 10.5 centimeters and width between 8.5 and 10.5 centimeters put up as individual pieces in paper or plastic packages containing at least 50 pieces and not more than 1000 pieces, with each piece being also known as a gauze sponge (provided for in subheading 5208.21.40).

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2469 Product: Production Roll Bleached Woven Cotton Gauze

HTSUS: 5208.21.40

Petitioner: American Fiber & Finishing, Inc.
Full discription: Bleached woven fabrics, wholly of cotton, of yarn numbers 43 to 68, put up in continuous rolls with widths of not less than 74 cm or more but not over 184 cm of varying lengths ranging from 1640 to 6500 meters (provided for in subheading 5208.21.40). Also called Production Roll Bleached Cotton Gauze.

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3088 Product: Woven fabric of cotton

HTSUS: 5208.32.40

Petitioner: Dystar L.P.
Filer: Venable LLP
Full discription: Woven fabric of cotton, containing 85 percent or more by weight of cotton, weighing more than 100 g/m2 but not more than 200 g/m2, of plain weave, with average yarn number of 43 to 68, poplin (provided for in 5208.32.40)

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2096 Product: Fabric Other. Solution Dyed Acrylic Fabric

HTSUS: 5512.29.00

Petitioner: Sattler Corp
Full discription: Awning fabric, water resistant finish, total weight 280-300 g/m2 woven using Multiple (folded) or cabled yarn (604) produced from solution dyed acrylic staple fibers (polyacrylonitrile staple) containing 85% or more by weight of acrylonitrile units and 2% but not over 3% of water, colored, crimped with a range of decitex from 1.98-2.42 and fiber length between 40 and 47.5 mm, with a Solar Reflective Index certified by the Importer. (Provided for in subheading 5503.30.00)

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Wool Apparel Manufacturers Trust Fund

The Agriculture Wool Apparel Manufacturers Trust Fund was authorized under Section 12315 of the Agricultural Act of 2014 (the 2014 Farm Bill) to reduce the economic injury to domestic manufacturers resulting from tariffs on wool fabric that are higher than tariffs on certain apparel articles made of wool fabric. The Agriculture Wool Trust is a mechanism for four types of annual payments:

• Payments to Manufacturers of Certain Worsted Wool Fabrics

• Payments Under the Monetization of the Wool Tariff Rate Quota

• Wool Yarn, Wool Fiber, and Wool Top Duty Compensation Payments

• Refund of Duties Paid on Imports of Certain Wool Products

Clients of Agathon Associates can find links to the application forms at http://www.agathonassociates.com/textile-pri/wool-program/2017.htm. You will need to enter your username and password. If you do not know your username and password email David Trumbull at david@agathonassociates.com.

Notice of Publication of Petitions for Duty Suspensions and Reductions and Opportunity to Comment on Petitions

On January 11, 2017, as required by the American Manufacturing Competitiveness Act of 2016, the U.S. International Trade Commission published on its website the petitions for duty suspensions and reductions that were timely filed and contain the required information, and the Commission is requesting members of the public to submit comments to the Commission on the petitions published no later than the close of business February 24, 2017. Agathon Associates can assist you in filing objections to petitions.

Agathon Associates has identified over 400 individual request that may be of interest to the fiber, yarn, fabric, apparel, and footwear industries and have entered them into a database in order to match up petitions with my clients’ interests. If you are as overwhelmed as I by the number, complexity, and over-lapping nature of the petitions you may find value in the database I created, and which I offer to my industry colleagues free. If you pass it along to others I’d appreciate it if you mention that it was my work.

Usual disclaimers: This is my own unofficial personal work. I have tried to transfer everything from the ITC MTB portal accurately, but I may have slipped up here or there. The ITC MTB Portal must be consulted in conjunction with my database, which is meant as merely a tool to assist you in using the official ITC MTB Portal.

The database is in Microsoft Access, so you will need that program to open it. It is shared on Dropbox CLICK HERE and download MTB-2016-selected.mdb. Your anti-virus program may give you a warning when you attempt to download the database, that is routine with Access databases. This file will not harm your computer.

If you don't have Microsoft Access, you can also get the information as an Excel spreadsheet, also shared on Dropbox at CLICK HERE. NOTE, due to limitations of Excel, some long product descriptions are truncated.

Monday is Martin Luther, Jr. King Day

Monday, January 16th, U.S. government offices, and much of private business other than retail, will close in observance of Martin Luther King, Jr. Day.

When President Ronald Reagan, on November 2, 1983, signed into law the Martin Luther King, Jr. holiday he reminded his listeners that—

Martin Luther King was born in 1929 in an America where, because of the color of their skin, nearly one in ten lived lives that were separate and unequal…taught in segregated schools…could find only poor jobs, toiling for low wages…refused entry into hotels and restaurants, made to use separate facilities. In a nation that proclaimed liberty and justice for all, too many black Americans were living with neither.

If we consider the time from the arrival of the first slaves in the Virginia Colony in 1619 to the achievement of full civil rights for all African-Americans in every one of the 50 states in the 1960s, it was a very long struggle to achieve full civil equality. The modern African-American Civil Rights Movement that Dr. King was so important a leader in, on the other hand, was, for a major societal and legal change, relatively swift. It is generally considered to occupy the period from 1955 (Rosa Parks and the Montgomery Bus Boycott) to 1968 (King assassination and the Poor People's March). To those in the struggle it was long. But looking back, from 1955 to 1983, not quite 30 years, is, roughly, a generation. In one generation we advanced from a nation that tolerated legal discrimination against part of our citizenry based on the color of their skin, to a nation in which such as thing is not only forbidden, but absolutely unthinkable. It was Dr. King, more than any other single leader in the civil rights movement, who, with his insistence on non-violence, and his prophet-like call to the conscience of White American, who brought about such a marvelous and much needed change. That is why he is up there with Columbus and Washington as one of just three men who so influenced our nation that we honor them with a federal holiday.

President Reagan went on to remark that "Dr. King had awakened something strong and true, a sense that true justice must be colorblind." And Mr. Reagan pointed to both the progress made—and yet to be made—in the struggle for an America that lives up to her noble sentiment that all men are created equal, citing the passage of the Civil Rights Act of 1964 and Voting Rights Act of 1965. Reagan, as he so often did, then called on Americans to embrace and enlarge upon their better nature, and exhorted his listeners—

But most important, there was not just a change of law; there was a change of heart. The conscience of America had been touched. Across the land, people had begun to treat each other not as blacks and whites, but as fellow Americans.

Traces of bigotry still mar America. So, each year on Martin Luther King Day, let us not only recall Dr. King, but rededicate ourselves to the Commandments he believed in and sought to live every day: Thou shall love thy God with all thy heart, and thou shall love thy neighbor as thyself. And I just have to believe that all of us —- if all of us, young and old, Republicans and Democrats, do all we can to live up to those Commandments, then we will see the day when Dr. King's dream comes true.

Dept. of Defense Clothing and Footwear Contracts Awarded

Aurora Industries, Camuy, Puerto Rico, has been awarded a maximum $89,493,804 firm-fixed-price, indefinite-quantity contract for coats and trousers. This is a one-year base contract with three one-year option periods. This was a competitive acquisition with one response received. Location of performance is Puerto Rico, with a Jan. 10, 2018, performance completion date. Using customer is Defense Logistics Agency. Type of appropriation is fiscal 2017 through fiscal 2018 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-17-D-1010).

Rocky Brands Inc., Nelsonville, Ohio, has been awarded a maximum $8,372,721 firm-fixed price, indefinite-delivery/indefinite-quantity contract for hot weather combat boots. This was a competitive acquisition with two responses received. This is a one-year contract with no option periods. Locations of performance are Ohio and Puerto Rico, with a Jan. 19, 2018, performance completion date. Using customer is Army. Type of appropriation is fiscal 2017 defense working capital funds. The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE1C1-17-D-1024).

U.S. Department of Commerce Advisory Council on Trade Enforcement and Compliance ("ACTEC")

On January 10, 2017, the Dept. of Commerce published in the Federal Register (82 FR 2953) Notice of establishment of the U.S. Department of Commerce Advisory Council on Trade Enforcement and Compliance.

I. Background and Authority

The ACTEC is established in accordance with the provisions of the Federal Advisory Committee Act, as amended, 5 U.S.C. App., to advise the Secretary on matters relating to relating to the Department's statutory missions to enforce U.S. trade remedy laws and seek foreign government compliance with trade agreements. The Department affirms that the creation of the ACTEC is necessary and in the public interest. The Assistant Secretary for Enforcement and Compliance, U.S. Department of Commerce, shall serve as the Executive Director of the ACTEC. The Executive Director shall designate both the Designated Federal Officer (DFO) and a Secondary DFO from among the employees of the International Trade Administration's Enforcement and Compliance unit. The DFO serves as the ACTEC Executive Secretary.

The ACTEC shall advise the Secretary on laws and government policies that deal with trade enforcement; identify and recommend programs, policies, and actions to help the Department in its efforts to ensure that U.S. trading partners comply with their trade agreement commitments; and recommend ways that the Department's enforcement and compliance activities can better support a strong trade and manufacturing agenda and advance the commercial competitiveness of U.S. firms and workers.

The ACTEC shall act as a liaison with the stakeholders represented by the membership, and shall provide a forum for stakeholders on current and emerging issues concerning trade enforcement and compliance matters.

The ACTEC shall report to the Secretary on its activities and recommendations regarding the Department's trade enforcement and compliance efforts. In creating its reports, the ACTEC should survey and evaluate the trade enforcement and compliance concerns of its stakeholders, should identify and examine specific trade problems that require attention, and should examine the needs in this area to inform the ACTEC's efforts. The ACTEC should recommend specific solutions to the problems and needs it identifies.

II. Structure, Membership, and Operation

The ACTEC shall consist of no more than twenty members appointed by the Secretary. Members shall represent U.S. entities involved in and significantly affected by imports and/or those that heavily export to, or operate in, countries with which the United States has trade agreements.

All members must be U.S. Nationals and shall be selected based on their ability to carry out the objectives of the ACTEC, in accordance with applicable Department of Commerce guidelines, in a manner that ensures the ACTEC is balanced in terms of points of view, demographics, industry sector, geography of both production infrastructure and product inputs, and company size. Members shall also represent a broad range of products and services and shall be drawn from large, medium, and small enterprises, private sector organizations, and other entities, such as, non-governmental organizations, associations, and economic development organizations. Members shall serve in a representative capacity, representing the views and interests of their sponsoring entities and those of their particular industrial and regional sector (as applicable); they are, therefore, not Special Government Employees. Appointments to the ACTEC shall be made without regard to political affiliation.

Members serve for a term of two years and will serve at the pleasure of the Secretary. The Secretary may at his/her discretion reappoint any member to an additional term or terms, provided that the member proves to work effectively on the ACTEC and his/her knowledge and advice are still needed.

The Secretary shall designate the ACTEC chair and vice chair or vice chairs from among the members of the ACTEC. The Executive Director may establish subcommittees from among the ACTEC members, in order to perform specific functions within the jurisdiction of the ACTEC, subject to the provisions of the Federal Advisory Committee Act (FACA), the FACA implementing regulations, and applicable Department of Commerce guidance. Subcommittees must report back to the parent committee and do not provide advice or work product directly to the Secretary.

III. Compensation

Members will not be compensated for their services or reimbursed for their travel expenses.

Approval of Subzone Status, Jos. A. Bank Manufacturing Company, Hampstead and Eldersburg, Maryland

On October 13, 2016, the Executive Secretary of the Foreign-Trade Zones (FTZ) Board docketed an application submitted by the Maryland Aviation Administration, on behalf of the Maryland Department of Transportation, grantee of FTZ 73, requesting subzone status subject to the existing activation limit of FTZ 73, on behalf of Jos. A. Bank Manufacturing Company in Hampstead and Eldersburg, Maryland.

The FTZ staff examiner reviewed the application and determined that it meets the criteria for approval. Pursuant to the authority delegated to the FTZ Board Executive Secretary (15 CFR Sec. 400.36(f)), the application to establish Subzone 73D is approved, subject to the FTZ Act and the Board's regulations, including Section 400.13, and further subject to FTZ 73's 67-acre activation limit.

FTZ Application Filed for Glass Fibers and Certain Polyester

On December 19, 2016, PGTEX USA, Inc. (PGTEX) has submitted to the Foreign Trade Zone Board a notification of proposed production activity for its facility in El Paso, Texas, within FTZ 68.

The PGTEX facility is located within Site 3 of FTZ 68. The facility is used for the production of fiber glass fabrics used in a variety of applications: Wind turbine blades, sporting goods, autos, shipbuilding, building materials and aerospace.

The components and materials sourced from abroad include yarns (glass fiber) (HTSUS 7019.19), glass fibers (HTSUS 7019.90), and polyester yarn (HTSUS 5402.33) (duty rates range from 4.3 to 6.5%). The applicant indicates that these foreign-sourced materials/components will be admitted to the FTZ in privileged foreign status (19 CFR 146.41). This would preclude inverted tariff benefits on such items on its domestic sales of fiber glass fabrics. Production under FTZ procedures could exempt PGTEX from customs duty payments on the foreign-status components used in export production. Customs duties also could possibly be deferred or reduced on foreign-status production equipment.

20-Year Old US-EU Beef Threatens Duty Increase for Certain Rayon Fiber and Yarn

The EU bans the import of beef and beef products produced from animals to which any of six hormones have been administered for growth-promotion purposes. The effect of the EU ban is to prohibit the import of all but specially-produced U.S. beef and beef products. In February 1998, the WTO Dispute Settlement Body (DSB) in the EU-Beef case found that the ban was inconsistent with the obligations of the European Communities (now the EU) under the WTO Agreement. In July 1999, a WTO arbitrator determined that the EU import ban on U.S. beef and beef products had nullified or impaired U.S. benefits under the WTO Agreement in the amount of $116.8 million each year. On July 26, 1999, the DSB authorized the United States to suspend the application to the EU, and member States thereof, of WTO tariff concessions and related obligations covering trade in an amount of $116.8 million per year. Pursuant to that authorization, USTR announced a list of EU products that would be subject to a 100 percent rate of duty effective with respect to products entered, or withdrawn from warehouse, for consumption on or after July 29, 1999. See 64 FR 40638.

On May 13, 2009, the United States and the European Commission announced the signing of a Memorandum of Understanding (MOU) in the EU-Beef case. See 74 FR 40864.

The MOU provided for the EU to make phased increases in market access by adopting a tariff-rate quota (TRQ) for beef produced without growth-promoting hormones (termed HQB products), in return for the United States making phased reductions in additional duties the United States had imposed consistent with WTO authorization. See 74 FR 40864. Both in accordance with the MOU and as a result of a decision of the United States Court of Appeals for the Federal Circuit, USTR terminated all additional duties on EU products, effective May 2011. See 76 FR 30987.

Under the second phase of the MOU, starting in August 2012, the EU increased the TRQ to 45,000 metric tons (MT). Although the EU has maintained this 45,000 MT TRQ for HQB products, it has not in practice provided benefits to the U.S. beef industry sufficient to compensate for the economic harm resulting from the EU ban on all but specially-produced U.S. beef. In particular, non-U.S. exporters of HQB products have been able to fill a substantial part of the 45,000 MT TRQ.

In February 2016, Congress passed and the President signed the Trade Facilitation and Trade Enforcement Act of 2015. Among other things, the Act amended relevant provisions of the 1974 Trade Act to confirm that the Trade Representative may reinstate a previously terminated Section 301 action in order to exercise a WTO authorization to suspend trade concessions. In particular, the new Section 306(c) of the 1974 Trade Act permits the Trade Representative to reinstate a Section 301 action following (1) a request from the petitioner or any representative of the domestic industry that would benefit from reinstatement of action, (2) consultations under Section 306(d) of the Trade Act, and (3) a review under section 307(c) of the Trade Act.

On December 9, 2016, representatives of the U.S. beef industry invoked the new Section 306(c) of the 1974 Trade Act by filing a written request for reinstatement of action.

In order to assist in a possible reinstatement of the action in accordance with Section 306(c) of the 1974 Trade Act, and to provide information in connection with a review under Section 307(c) of the Act, the Section 301 Committee seeks public comments with respect to the specific EU products on the lists for increased import duties.

The list of products potential subject to increased duty is lengthy and includes two textile products:

• Viscose rayon staple fibers, not carded, combed or otherwise processed for spinning, provided for in Subheading 5504.10.00 HTSUS, rate of duty 4.3%.

• Single yarn (other than sewing thread) containing 85% or more by weight of artificial staple fibers, not put up for retail sale, provided for in Subheading 5510.11.00 HTSUS, rate of duty 9%.

In the case of the fiber classified at 5504.10.00, total U.S. imports in 2015 were $174 million, of which imports from the EU were:

• Germany, $40 million
• Austria, $30 million
• United Kingdom, $260,000
• Czech Republic, $17,000
• Netherlands, $2,000
• Spain, $2,000

NOTE, that this fiber is the subject of several temporary duty suspension petitions recently filed as part of the new Miscellaneous Tariff Bill process and was formerly under duty suspensions.

In the case of the yarn classified at 5510.11.00, total U.S. imports in 2015 were $41 million, of which imports from the EU were:

• Spain, $700,000
• Belgium, $410,000
• Switzerland, $151,000
• Austria, $96,000
• Slovenia, $23,000
• France, $16,000
• United Kingdom, $6,000

Comments are due by Monday, January 30, 2017. There will be a hearing in Washington on Wednesday, February 15, 2017.

To see the full text of the Federal Register notice CLICK HERE

Water-Tight Compartments

REMINDER TO THE TRADE -- Agathon Associates from time to time gets questions regarding how the U.S. free trade agreements work together. The short answer is that they don't. Each agreement is a "silo" regulating trade between the U.S. and the partner country (or in the case of NAFTA and DR-CAFTA, partner countries). So while the U.S. has a free trade agreement with Mexico (NAFTA) and with six Caribbean region nations (DR-CAFTA), there is no general provision that allows co-production in Mexico and the Caribbean. While co-production would give manufacturers greater flexibility in sourcing, there are are problems with the concept --

1. When the U.S. gives a nation duty-free access via a free trade agreement, certain obligations are imposed on that partner nation and it would be unfair to give the benefit to a third party who has not signed on to the particular obligations of that agreement.
2. Each FTA is unique and reflects the compromises made by the U.S. and partner nation(s), it is a delicate balance of the interests of the U.S. and the partner(s), giving benefits to a third party would upset that balance.
3. Enforcement of FTA rules is already difficult enough, allowing "mix-and-match" would make enforcement extremely difficult.

There are a few fairly narrowly defined exceptions --

1. Some, but not all, FTAs permit the use of certain nylon yarn from Canada, Israel, or Mexico.
2. DR-CAFTA allows for a limited amount of Mexican fabric in the case of woven (but not knit) apparel, with sub-limits for certain types of woven apparel.
3. Some, but not all, FTAs contain tariff preference levels (TPLs) which allow a limited quantity of yarn and fabric from any source. These provisions are often specific to the type of fiber, yarn, fabric and apparel.

The U.S. has 14 FTAs with 20 countries. No two agreements are the same, with the rules varying from agreement to agreement. In the case of the two multi-lateral agreements, NAFTA and DR-CAFTA, the rules even vary among the partner countries of the agreement. Agathon Associates can assist you in understanding, complying with, and benefiting from, free trade agreements.

Walt Disney Parks and Resorts Recalls Minnie and Mickey Mouse Infant Hoodie Sweatshirts Due to Choking Hazard

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