TPP Agreement: Significant Benefits For Footwear Industry

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Under the p Pacific Partnership Agreement (TPP), significant gains can be made from the US import and export, and it is expected to become one of the notable winners.

According to a survey conducted by the US International Trade Commission (USITC), it is estimated that the trade agreement will enable the United States to import footwear from all TPP Member States to US $1 billion 600 million, up 23.4% in 2023.

Most of the growth will come from Vietnam. For the industry as a whole, it is the second largest supplier and the largest supplier of TPP to the US footwear industry.

Once the trade agreement comes into effect, the Chinese mainland will also be replaced. The import of footwear from mainland China is expected to drop by 400 million 400 thousand US dollars, or 1.3%.

However, the report points out that these imports are not expected to compete or negatively affect the production of the United States.

In fact, compared with the garment industry, according to the TPP agreement, it is estimated that US exports will rise by only 0.3%, to US $10 million, which will probably provide us $135 million or boost US footwear exports by 23.6%.

TPP may cause us shoe imports to go up

Us footwear exports grew by US $125 million, or 76.5% of the gains. Some of them were shipped to Vietnam and then exported to the US market after processing and assembling products.

In contrast, the model predicts that US footwear exports to NAFTA members will drop by US $41 million, or 1.6%.

According to the report, the industry in the United States has said that because of the TTP agreement, they expect no significant increase in footwear production in the United States, but compared with the 2032 base Committee, the results of the Commission mode show that the output of footwear is only 0.5% tiny.

Us footwear exports

During the 2013-15 years, the US footwear exports to the world have grown from US $788 million 900 thousand to US $845 million 900 thousand, or 7.2%.

During the same period, US footwear exports to TPP member countries increased by 22.4% to $400 million 500 thousand.

In 2015, the proportion of TPP member countries exporting to the United States accounted for nearly half of its footwear exports to 47.3%, up from 41.4% to 327 million 300 thousand in 2013.

In 2013, the main footwear parts exported to Vietnam amounted to US $60 million 100 thousand, up to US $103 million 700 thousand in 2015, with a growth rate of 72.5%.

Meanwhile, the US footwear products exported to another TPP country, Japan, fluctuated from 56 million 200 thousand US dollars in 2013 to 54 million US dollars in 2015, or 3.9%.

US exports to

The main footwear products of the country include leather shoes, footwear parts and brands.

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Us footwear imports

The United States is a major importer of footwear products. Between 2013 and 2015, it rose from $26 billion to $27 billion 200 million, or 10.7%.

During the same period, imports from TPP countries grew by US $1 billion 400 million, or 40% US $4 billion 900 million. In 2015, TPP accounted for 18% of the total imports of footwear in the United States, and (2015) 87% of imports from TPP countries were dutiable.

Vietnam in TPP is the largest footwear supplier in the US market, accounting for 88% of shipments in these countries.

Vietnam is the second largest footwear supplier after China. In the past two years, the United States imported footwear products from Vietnam from $2 billion 900 million in 2013 to $4 billion 300 million in 2015, or nearly 5 0%.

Sports and sports shoes, leather shoes, including some rubber and plastic outsole and uppers, including working shoes, and leather boots of various men and women, are one of the main types of footwear imported from Vietnam in 2015.

The average tariff rate of imported footwear from Vietnam is 12.5%, accounting for 99.5% of the US customs value of imported footwear from TPP countries, while the average tariff of imported footwear from all TPP countries in the United States is 10.8%.

According to reports, the industry is expected to increase exports of footwear products by 20% in 2016 as a result of TPP and other new FTA agreements.