US Pushing Impartial Customs Penalties, De Minimis Thresholds in TPP, Says USTR in Summary

The Office of the U.S. Trade Representative released a nearly 50-page summary of U.S. negotiating objectives in the Trans-Pacific Partnership on Sept. 23. The summary, coupled with a recent round-up of the state of play in the talks (see 1509080024), falls in line with new USTR transparency obligations put in place by Trade Promotion Authority.

The document (here) doesn’t offer specifics on negotiating positions for other countries, nor does it comment on the likelihood that U.S. objectives will ultimately make it into a final pact. Still, Senate Finance ranking member Ron Wyden, D-Ore., a leading voice on trade transparency over recent months, immediately applauded the USTR release (here).

U.S. officials aim to lock down TPP trade facilitation provisions that “ensure customs penalties are administered in an impartial and transparent manner, and that countries avoid conflicts of interest in administering penalties,” USTR said. On top of that, the U.S. is pushing for rules on de minimis thresholds and expedited customs processing for express deliveries. Through the Customs, Trade Facilitation and Rules of Origin chapter, the U.S. is also pushing for a “common TPP-wide system for traders to show that their goods are made in the TPP region and for customs to verify that traders are following the rules of origin.” The U.S. aims to prevent illegal transshipments through its customs rule, said USTR.

On the textile front, the U.S. is urging TPP partners to embrace the “yarn forward” rule of origin, which mandates all materials are sourced in the TPP region in order to receive preferential treatment, as well as the “short supply” list of yarns and fabrics exempt from that rule. Some trade experts expect TPP to include earned import allowance programs for certain apparel groupings (see 1508310064), but USTR didn’t comment on that prospect. The U.S. is committed to rules that allow countries to re-impose duties on sensitive products in the event of import surges, as well, said USTR.

The U.S. also continues to hammer home its preference that sanitary and phytosanitary rules be based on science. U.S. officials often accuse foreign countries of creating such rules to prevent market access, rather than safeguarding food supply. “TPP will also help expand our agricultural exports by addressing unscientific, discriminatory, and otherwise unwarranted barriers that are often designed to keep American goods out of the market,” said USTR. “TPP will require no changes to existing U.S. food safety laws or regulations.”

The summary hits on a range of other issues in the negotiations, such as strengthened intellectual property rights, as well as stricter labor and environment regulations. On market access, the U.S. is continuing to seek the greatest amount of duty cuts for U.S. exports across the range of industries, said the summary.