TGA Applauds Conclusion of Central America Free Trade Talks Agreement Benefits U.S. Travel Goods Industry

Princeton, NJ — 17 December 2003 — Travel Goods Association President Michele Marini Pittenger applauded today's successful conclusion of the negotiations toward a U.S.-Central America Free Trade Agreement (FTA). "Many TGA members have important trade relationships with Central America," noted Pittenger. "The travel goods provisions in the final agreement ensure that the FTA is a win-win for both the U.S. travel goods industry and Central America." Pittenger continued, "On behalf of the U.S. travel goods industry, I wish to express my appreciation for the hard work of the U.S. government in ensuring that this agreement benefits all parts of the U.S. travel goods industry."

The final agreement makes ALL travel goods (both textile and non-textile) exports to and imports from Central America duty-free immediately under very flexible rules of origin. Because the Dominican Republic will join this agreement in spring 2004, these same provisions will also apply to ALL travel goods (both textile and non-textile) exports to and imports from the Dominican Republic. According to Thomas Sandler, TGA Chair and President of Samsonite Americas, "This a huge victory for TGA and the U.S. travel goods industry." U.S. travel goods companies imported more than $26 million worth of product from Central America and the Dominican Republic (DR) during the year ending October 2003 — the most recent period for which statistics are available. Much of this product is made with U.S. parts and materials.

The agreement also includes strong, but reasonable provisions to improve labor rights in Central America by requiring the Central American countries (and the Dominican Republic) to enforce their current labor laws or face fines. In addition, the agreement contains specific language barring the abrogation of current laws and provides significant resources and support to assist the FTA countries in the enforcement of their laws. Sandler stated that, "This agreement embodies almost every aspect of TGA's new trade policy, promoting reciprocal free trade while establishing reasonable and effective codes of conduct on labor that reflect the corporate social responsibility goals of the association and its members."

Continued Sandler, "TGA and its members look forward to working with the U.S. Congress to ensure approval of the U.S.-Central America Free Trade Agreement when the FTA comes before Congress in the Summer of 2004."

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The Travel Goods Association is the voice of the U.S. travel goods industry. A national trade association, TGA represents the manufacturers, distributors and retailers of luggage, leather goods, business and travel accessories, business and computer cases, handbags and other products for people who travel.