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U.S. Companies Asked to Submit Initial TPP Short Supply Requests by March 31

Wednesday, March 13, 2013

U.S. Companies Asked to Submit Initial TPP Short Supply Requests by March 31

The Obama administration is giving U.S. interested parties until March 31 to submit any requests for short supply designations as part of the ongoing Trans-Pacific Partnership Agreement negotiations. The TPP short supply proposal put forward by U.S. negotiators includes separate short supply designations structured on a permanent and temporary basis. All short supply designations would be established as of the date negotiations are concluded, which means that no additional short supply requests would be allowed after the TPP takes effect.

Once the TPP enters into force, textile and apparel goods containing fibers, yarns or fabrics that are designated to be in short supply and meet all other requirements would qualify for preferential tariff treatment even though the input does not originate from a TPP country. If a fabric is designated in permanent short supply for a particular apparel product, that product could qualify for TPP preferences if it is cut and sewn in one or more TPP countries and meets any other additional requirements, such as assembly with TPP-origin sewing thread.

The TPP is a free trade agreement being negotiated between 11 countries: the United States, Australia, Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. Governments other than the U.S. may engage in their own internal short supply analyses with a different deadline. The participating countries have announced their intention to conclude the agreement by the APEC summit to be held in Bali on Oct. 1-8. 

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