Category Archives: Washington Newsline

Following strong lobbying from Gemini Shippers Group and a number of other stakeholders in the business community, Congress, and the diplomatic community, the Administration has launched a focused review to determine if 28 categories of travel goods can be designated for duty free access under the Generalized System of Preferences (GSP). The review follows an earlier process, in which FASA/Gemini participated, that resulted the designation of these products for least developed developing countries under the GSP and African Growth and Opportunity Act (AGOA) programs. The process launched this week, if successful, could result in duty free treatment for the remaining GSP eligible countries. Under the process, the Administration will receive two sets of comments in October, and hold a hearing on October 18. The Administration has pledged to make a decision by January 2017. Gemini Shippers Group will participate in this process.

The Office of the U.S. Trade Representative (USTR) is requesting assistance from the public in identifying Internet-based and physical counterfeit markets located outside the United States that should be included in the 2016 Notorious Markets List. This list, which the U.S. government has published since February 2011, identifies “select online and physical marketplaces that reportedly engage in or facilitate substantial copyright piracy and trademark counterfeiting.” FASA/Gemini companies who are combatting counterfeits in online or physical markets around the world should contact FASA/Gemini if they would like to report these problems to the USTR.  Deadline for submission of comments is October 7.

Gemini Shippers Group joined nearly thirty other associations in a series of joint letters to U.S. trading partners urging them to quickly ratify and implement the Trade Facilitation Agreement (TFA). Letters were sent to free trade agreement (FTA) partners (see sample) and non-FTA (see sample here).  The TFA – a groundbreaking agreement to cut red tape and bottlenecks at the borders – is expected to increase global merchandise exports by $1 trillion annually, creating more than 20 million jobs. The agreement can only enter into effect once 109 World Trade Organization (WTO) member countries have ratified it.  Currently, only 90 countries have completed their domestic ratification requirements, although many more have initiated the process. It is our hope that the letter will signal strong support from the U.S. business community for countries, especially FTA partners, to pick up the pace.

On Friday, August 12, the Obama Administration submitted a draft statement of administrative action (SAA) on the Trans-Pacific Partnership (TPP) to the Congress. The move is the latest step that needs to be taken to comply with the terms and timeline of Trade Promotion Authority (TPA), which governs how Congress considers free trade agreements, like the TPP.  At least 30 calendar days before submitting the actual implementing bill for the TPP, the Administration needs to provide a draft SAA, outlining the various significant administration actions that need to be taken to implement the TPP. The last formal step taken before today was the submission of the economic analysis in May by the U.S. International Trade Commission (USITC).  Today’s submission of the draft SAA means that the earliest the TPP Implementing Bill can be submitted to the Congress is Sunday, September 11. Conventional wisdom suggests, however, that no implementing bill will be submitted until there is more certainty that a vote can prevail.

Gemini Shippers Group sent a letter on August 4 to President Barack Obama urging the designation of 28 categories of travel goods to be eligible for duty free access to the United States from all Generalized System of Preferences (GSP) eligible countries. The letter follows on to a proclamation issued by the Obama Administration in late June designated these travel goods as eligible for duty free status, but only when imported from countries in Africa or a handful of least developed developing countries. The early decision precludes countries like Thailand, the Philippines, and India from exporting travel goods duty free to the United States.  More than 100 other companies, associations, organizations and brands signed on to the August 4 letter. Gemini signed a similar letter in March following testimony delivered earlier in the year.

On August 8th, Gemini Shippers Group joined more than 100 other trade associations and organizations in urging the International Longshore and Warehouse Union and the Pacific Maritime Alliance to begin discussions soon to extend the current management/labor contract or to negotiate a new long-term contract. The letter emphasizes continuous dialogue as a way to avoid the disastrous port congestion during the last negotiations.

August 8, 2016

Mr. James McKenna

Chairman and CEO

Pacific Maritime Association

Mr. Robert McEllrath

President

International Longshore and Warehouse Union

Dear Mr. McEllrath and Mr. McKenna:

The undersigned organizations representing manufacturers, farmers and agribusinesses, wholesalers, retailers, importers, exporters, distributors, transportation and logistics providers, and other supply chain stakeholders are writing to follow up on our March 15th letter encouraging the ILWU and PMA to begin early discussions on either a contract extension or a new contract. We strongly believe a contract extension is critical to ensure stability and predictability at West Coast ports.

You have both recognized the negative economic impact of disruptions and slowdowns that occurred during the last negotiations. We believe starting negotiations early will help avoid a repeat of that experience. As we have previously stated, we believe a new model for future negotiations needs to be developed, one which stresses early and continuous dialogue. This should include a pledge by both parties to ensure there are no disruptions to cargo movement during negotiations. Maintaining the arbitration mechanisms in the existing contract for the duration of the negotiations, even if the contract expires before a final agreement is reached, is critical to that process.

We applaud your organizations for considering an extension of the current contract. However, we now call upon you to agree to the requests and begin the negotiations. We fully believe that agreeing early to a contract extension or a new long-term contract will provide the stability and predictability that is needed for global competitiveness that will benefit all stakeholders (labor, terminal operators, cargo owners, etc.) who rely on West Coast ports.

Thank you for your consideration of our request.