Hundreds of importers, exporters, retailers, manufacturers, transportation providers, and others sent a letter to U.S. Trade Representative Jamieson Greer March 24 opposing USTR’s proposal to impose fees and/or service restrictions on cargo ships operated by or built in China.
“USTR’s proposed actions will not deter China’s broader maritime ambitions and will instead directly hurt American businesses and consumers,” the letter said. “Specifically, USTR’s proposed fees will increase shipping costs … by at least 25% ($600-$800 or more), adding approximately $30 billion in annual costs on U.S. businesses and farmers. This will lead to higher prices for U.S. consumers and undermine the competitiveness of many U.S. exports— leading to a decline in export revenues and increasing the U.S. trade deficit.”
Further, the letter said, the proposed measures would likely prompt ocean carriers to reduce service to many U.S. ports and potentially divert cargo to ports in Canada and Mexico. “This will reduce ocean traffic at many smaller ports, creating profound economic damage – including lost jobs – in communities where ports serve as vital economic hubs,” and will also “increase congestion across the country’s logistics network” that would delay both imports and exports.
The letter acknowledged and supported the proposal’s intent to spur revitalization of a domestic shipbuilding industry but asserted that reaching that goal cannot be done in seven years, regardless of whether any USTR measures are implemented. A more effective approach, the letter said, would be “a dedicated strategy with sustained investments, leadership, and a long-term commitment from both the public and private sectors.”
USTR held a hearing on its proposal March 24 and 26 and a public comment period ended March 24. It is unclear when USTR might announce a final action.
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