Retailers Welcome Effort to Improve and Extend Trade Preference Programs 

Today the Retail Industry Leaders Association (RILA) welcomed legislation unveiled by Representative Jim McDermott (D-WA) to renew and expand trade preference benefits aimed at promoting economic development in the world’s poorest countries.

“We applaud Congressman McDermott for pursuing this important legislation,” said Stephanie Lester, vice president for international trade. “RILA is committed to promoting flexible and meaningful preference programs that assist in the development of the world’s poorest countries and enhance the availability of a wide range of high quality products for American families.”

The bill, formally known as the “New Partnership for Trade Development Act of 2009” (H.R. 4101), would expand products eligible for duty-free treatment to include more products that are made by more of the world’s least developed countries, such as textiles and apparel produced in Cambodia and Bangladesh.  The bill would also simplify the rule of origin for preference programs and extend the Generalized System of Preferences (GSP) program until 2019.  RILA members welcome these positive changes to enhance, simplify, and harmonize the U.S. trade preference regime.

The bill also favors rigorous and bipartisan labor provisions already established under the Africa Growth and Opportunity Act (AGOA) program, rather than the contentious and ambiguous labor conditions that were included in trade preference legislation that the House of Representatives passed for Pakistan and Afghanistan earlier this year.  RILA reinforces our members’ commitment to source apparel only under socially responsible and ethical conditions from factories that meet strict labor compliance standards.

“We are pleased that Congressman McDermott is initiating the dialogue with a bold new proposal to improve and expand the trade opportunities offered to the world’s poorest countries.  Retailers welcome a simple and harmonized approach to promote sustainable development through trade preferences,” added Lester.  “We also welcome the House hearing this week to consider improvements of the trade preference programs.  As that dialogue continues, we look forward to a robust discussion of Congressman McDermott’s proposal,” concluded Lester.

The Retail Industry Leaders Association is the trade association of the world’s largest and most innovative retail companies.  RILA members include more than 200 retailers, product manufacturers, and service suppliers, which together account for more than $1.5 trillion in annual sales, millions of American jobs and operate more than 100,000 stores, manufacturing facilities and distribution centers domestically and abroad.

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