Major retailers, trade groups and politicians gave an outpouring of congratulatory remarks last week following the introduction of trade legislation with potentially large implications for the retail industry and US economy.
The trade promotion authority (TPA) legislation, titled the “Bipartisan Congressional Trade Priorities and Accountability Act of 2015” is a necessary precursor for the President to negotiate and finalize free trade agreements such as the Trans-Pacific Authority Agreement and the Environmental Goods Agreement, both of which are seen as benefitting to the retail industry.
The TPA is designed to provide clear negotiating objectives for trade agreements that create new opportunities for American business and its global competitiveness. The most important issues for retailers in the agreement, which covers 14 Asian countries except China, are the elimination of duties and creation of workable rules on high-tariff items, such as apparel and footwear.
The Retail Industry Leaders Association (RILA) issued a statement in January when the trade policy was introduced to the agenda. “Trade is crucial to the retail industry and to breaking down barriers to provide open access to products and markets around the world. Trade Promotion Authority (TPA) could create tremendous new opportunities for generations of American workers.”
Sources: RILA, Retailing Today
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