NAM and AHCT urge action on Miscellaneous Tariff Bill.
Press Release Summary:
To reduce costs for America's manufacturers, NAM and Ad Hoc Coalition on Tariffs (AHCT)strongly urge Senate Finance Committee to begin work on Miscellaneous Tariff Bill, which would remove tariffs on vital production inputs that have no competitive products or domestic suppliers within U.S. economy. Congress traditionally passes MTB every 2 years. Legislation helps boost competitiveness of domestic manufacturers by temporarily suspending duties on components that are not made in U.S.
Original Press Release:
NAM/Tariff Coalition Urge Action On Miscellaneous Tariff Bill
THE AD HOC COALITION ON TARIFF
SENATE PROGRESS ON MISCELLANEOUS TARIFF BILL NEEDED TO REDUCE COSTS FOR AMERICA'S MANUFACTURERS
WASHINGTON, D.C., May 9, 2008 - The National Association of Manufacturers (NAM) and the Ad Hoc Coalition on Tariffs (AHCT) strongly urge the Senate Finance Committee to begin their work on the Miscellaneous Tariff Bill (MTB). The MTB provides critical duty relief to U.S. manufacturers by removing tariffs on vital production inputs that have no competitive products or domestic suppliers within the U.S. Economy.
"The Ways and Means Committee has significantly advanced the MTB process, but without Senate action, there will be no progress on an overall bill, and American companies will continue to pay unnecessary tariffs on critical inputs they must import, due to lack of domestic supply," said Doug Goudie, Director of International Trade Policy for the NAM. "The Senate has a very busy schedule, but we know that Chairman Baucus and Ranking Member Grassley understand the importance of maintaining America's manufacturing competitiveness and the value that local plant site managers place on their support. We hope they will continue to advance this very important initiative."
Congress traditionally passes an MTB every two years. The legislation helps to boost the competitiveness of domestic manufacturers by temporarily suspending duties on components that are not made in the United States. "If we leave these tariffs in place, rather than temporarily reduce them, our manufacturers will be at a competitive disadvantage in the global market," said Goudie. "Given the current economic situation, and the significant cost pressures from energy prices on U.S. companies, we need to do everything we can to ensure our manufacturers have a strong and level playing field."
Passage of an MTB this year would demonstrate Congress' commitment to promoting U.S. manufacturing and enhancing the competitiveness of the U.S. economy, Goudie said. As noted in a June 2007 Commerce Department study, "The goal of an MTB is to lower costs by reducing the tariff obligations on products or parts that are not available here at home and have to be imported. The lower costs from tariff savings can help to increase a company's competitiveness." Similarly, a
A February 2007 report from the Congressional Research Service stated that "lower foreign tariffs benefit U.S. exporters because they make U.S. goods more competitive in foreign markets". In addition, "lower U.S. tariffs can benefit domestic manufacturers and consumers because the cost savings on imported goods may be passed on consumers or to other "downstream" producers, ultimately resulting in lower costs of the finished products."
The National Association of Manufacturers is the nation's largest industrial trade association, representing small and large manufacturers in every industrial sector and in all 50 states. Headquartered in Washington, D.C., the NAM has 11 additional offices across the country. Visit the NAM's award-winning web site at www.nam.org for more information about manufacturing and the economy.
CONTACTS: NAM - Doug Goudie (202) 637-3078
AHCT - Laura Pearson (202) 872-8181
