Contact: Nate Herman
Phone: 703-797-9062
Email: nate@travel-goods.org

TGA Applauds Signing of U.S./Central America Free Trade Agreement
INDUSTRY URGES PRESIDENT TO SUBMIT AGREEMENT TO CONGRESS ASAP

Princeton, NJ - 28 May 2004 - Travel Goods Association President Michele Marini Pittenger applauded today’s formal signing of the U.S./Central America Free Trade Agreement (FTA) at the Organization of American States headquarters in Washington, DC. The Dominican Republic will formally join the FTA at a signing sometime in late June. "Many TGA members have important trade relationships with Central America and the Dominican Republic," 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 the region." 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. Now that the FTA has been signed, I strongly urge President George W. Bush to quickly submit and Congress to quickly approve the U.S./Central America FTA. Every day the FTA is not passed and implemented threatens this mutually beneficial relationship."

The final agreement makes ALL U.S. travel goods (both textile and non-textile) exports to and imports from Central America and the Dominican Republic duty-free immediately under very flexible rules of origin. Travel goods include luggage, handbags, briefcases, computer cases, duffel bags, wallets, portfolios and other items used by people who travel. Stated Pittenger, "This is a huge victory for TGA, the American consumer and the U.S. travel goods industry." U.S. travel goods companies imported more than $80 million worth of product from the region during 2003. Much of this product supports U.S. jobs because it is made with U.S. parts and materials. For the first time ever, this agreement also opens the Central American and Dominican markets to U.S.-made travel goods.

Despite this strong relationship with the region, U.S. travel goods imports from Central America and the Dominican Republic have dropped over 70 percent since 1999. The lack of flexibility in the current U.S. trade preference program, the Caribbean Basin Trade Partnership Act (CBTPA), have placed the region at a major disadvantage versus its competitors in Asia and elsewhere, especially with the elimination of worldwide quotas on textile travel goods that took place January 1, 2002.

"Failure to pass and implement this FTA quickly," according to Pittenger, "will mean that travel goods manufacturing, and the U.S. jobs supported by U.S.-made textile and other inputs utilized in that manufacturing, will leave this hemisphere. Instead, that manufacturing will continue to move to other regions around the world that do not use U.S. inputs."

The agreement includes strong and effective provisions to improve labor rights in the region by requiring the Central American countries and the Dominican Republic to enforce their current labor laws, which meet international labor standards, or face significant fines. In addition, the agreement contains specific language barring the abrogation of current laws and provides significant resources to assist Central America and Dominican Republic in the enforcement of its laws. Pittenger stated that, "This agreement embodies almost every aspect of TGA’s new trade policy as well as the needs of the U.S. travel goods industry, promoting reciprocal free trade with an important region for the industry while establishing effective and enforceable codes of conduct on labor that reflect the corporate social responsibility goals of the association and its members."

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.

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