`
`Suite 500
`1717 Pennsylvania Avenue, N.W.
`Washington, D.C. 20006-4623 U.S.A.
`(202) 289-1313
`Fax (202) 289-1330
`
`www.btlaw.com
`
`
`
`
`David M. Spooner
`Partner
`(202) 371-6377
`David.Spooner@btlaw.com
`
`December 20, 2018
`
`The Honorable Lisa R. Barton
`Secretary
`U.S. International Trade Commission
`500 E Street, S.W., Room 112
`Washington, D.C. 20436
`
`RE: Written Submission Concerning the U.S.-Mexico-Canada (“USMCA”) Agreement:
`Likely Impact on the U.S. Economy and on Specific Industry Sectors (Investigation
`No. TPA-105-003)
`
`Dear Madam Secretary:
`
`
`On behalf of the North American Association of Food Equipment Manufacturers
`(“NAFEM”), and pursuant to the scheduling notice announced by the U.S. International Trade
`Commission (Commission) in the Federal Register,1 please find attached the NAFEM’s public
`comments. The deadline for submission of written comments is December 20, 2018. Thus, this
`submission is timely filed.
`
`If you have any questions or require additional information, please do not hesitate to
`contact the undersigned.
`
`
`
`
`
`
`
`
`
`
`
`Sincerely,
`
`
`
`
`
`David M. Spooner, Esq.
`Christine J. Sohar Henter
`Barnes & Thornburg, LLP
`
`COUNSEL TO THE NORTH AMERICAN
`ASSOCIATION OF FOOD EQUIPMENT
`MANUFACTURERS
`
`
`
`
`
`
`
`
`
`1 United States-Mexico-Canada Agreement: Likely Impact on the U.S. Economy and on Specific Industry Sectors;
`Institution of Investigation and Scheduling of Hearing, Inv. No. TPA-105-003, 83 Fed. Reg. 52,232 (Oct. 16, 2018).
`
`
`

`

`
`
`161 N. Clark St., Ste. 2020
`Chicago, IL 60601 USA
` +1.312.821.0201
`info@nafem.org | nafem.org
`
`Board of Directors
`
`President
`Joe Carlson, CFSP
`Lakeside Manufacturing, Inc.
`
`President-Elect
`Rob Connelly, CFSP
`Henny Penny Corporation
`
`Secretary/Treasurer
`Richard Packer, CFSP
`American Metalcraft, Inc.
`
`
`Directors
`Greg Baggott, CFSP
`Cres Cor
`
`Teri Brewer, CFSP
`THERMO-KOOL/Mid-South
`Industries, Inc.
`
`Glenn Bullock, CFSP
`Antunes
`
`Steve Dowling, CFSP
`Sani-Serv
`
`Kurt Eickmeyer, CFSP
`Wood Stone Corporation
`
`Eva-Marie Fox, CFSP
`T&S Brass & Bronze Works, Inc.
`
`Debra Hanson, CFSP
`Vulcan Food Equipment Group
`
`Deron Lichte, CFSP
`FWE Food Warming Equipment
`Company, Inc.
`
`Danielle McMiller, CFSP
`Structural Concepts Corporation
`
`Cathy O’Shia, CFSP
`New Age Industrial Corporation
`
`David Rolston, CFSP
`Hatco Corporation
`
`Steve Spittle, CFSP
`Pitco Frialator, Inc.
`
`Ex-Officio Member
`Kevin Fink, CFSP
`Master-Bilt and Nor-Lake,
`Standex Foodservice Equipment
`Group Companies
`
`Headquarters
`Executive Vice President
`Deirdre Flynn, CFSP
`
`
`
`December 20, 2018
`
`
`via EDIS (USITC’s Electronic Filing System)
`Investigation No.: TPA-105-003
`
`
`The Honorable Lisa R. Barton
`Secretary
`Chairman Johanson & Commissioners
`U.S. International Trade Commission
`500 E Street, S.W., Room 112
`Washington, D.C. 20436
`
`RE: Written Submission Concerning the U.S.-Mexico-Canada
`(“USMCA”) Agreement: Likely Impact on the U.S. Economy and on
`Specific Industry Sectors (Investigation No. TPA-105-003)
`
`
`Dear Madam Secretary and U.S. International Trade Commissioners:
`
`
`The North American Association of Food Equipment
`
`Manufacturers (NAFEM) respectfully submits the following comments to
`
`the U.S.
`
`International Trade Commission
`
`(Commission)
`
`for
`
`its
`
`investigation of the U.S.-Mexico-Canada (USMCA) Agreement, as
`
`requested by the Office of the U.S. Trade Representative (USTR), in
`
`response
`
`to
`
`the Commission’s Request
`
`for Written Submissions
`
`Concerning the United States-Mexico-Canada Agreement: Likely Impact
`
`on the U.S. Economy and on Specific Industry Sectors, Inv. No. TPA-
`
`105-003 (83 Fed. Reg. 52,232, Oct. 16, 2018). NAFEM’s comments
`
`generally support the United States’ signing of the USMCA, but
`
`encourage the administration to further negotiate an exemption for
`
`Mexico and Canada from the Section 232 aluminum and steel tariffs,
`
`which impose additional tariffs on certain products related to the
`
`foodservice industry and its domestically produced equipment and
`
`supplies.
`
`

`

`Honorable Secretary Barton
`December 20, 2018
`Page 2 of 5
`
`
`
`I.
`
`Background on NAFEM
`
`NAFEM Comments Re: ITC Inv. No. TPA-105-103
`
`NAFEM (https://www.nafem.org/) is a trade association comprised of more than 550
`
`foodservice equipment and supplies manufacturers providing products for food preparation,
`
`cooking, storage, and table service for the food-away-from-home market. Since 1948, NAFEM
`
`has represented hundreds of U.S. companies that manufacture an array of foodservice
`
`equipment, ranging from primary cooking equipment such as stoves and ovens, to storage
`
`equipment such as refrigerators, freezers, and ice machines, along with preparation equipment
`
`like heated cabinets and racks, and serving equipment including tables, cookware, flatware, and
`
`beverage trollies. In brief, NAFEM members provide everything to the commercial foodservice
`
`industry except the food.
`
`NAFEM’s members include a range of small, medium and large U.S. businesses that
`
`provide indispensable U.S. manufacturing jobs throughout the United States. More than 60% of
`
`our members are small businesses with sales of $5 - $10 million annually. Overall sales for the
`
`North American foodservice equipment and supplies market in 2017, the most recent numbers
`
`available, were $13.3 billion. In turn, these businesses, their workers and the products they
`
`manufacture, support the foodservice industry, which includes corporate cafeterias, colleges
`
`and universities, correctional facilities, hospitals and eldercare, lodging and casinos, schools,
`
`supermarkets and convenience stores, and more than one million restaurant and chain
`
`locations across the United States alone. Last year, according to the National Restaurant
`
`Association (NRA), the restaurant industry employed approximately 14.7 million workers and
`
`generated $799 billion in sales. These businesses and their workers depend on NAFEM-
`
`member manufactured equipment and supplies to serve safe, flavorful food to consumers when
`
`and where they need it.
`
`

`

`Honorable Secretary Barton
`December 20, 2018
`Page 3 of 5
`
`
`
`NAFEM Comments Re: ITC Inv. No. TPA-105-103
`
`Since the majority of NAFEM members are small and medium-sized businesses, and
`
`many are family-owned, they are instrumental in providing vital U.S. manufacturing and
`
`distribution jobs for thousands of American families, fueling the success of the U.S. economy.
`
`NAFEM member companies also actively pursue exporting their U.S. goods outside the U.S.
`
`market to countries like Mexico and Canada. Furthermore, to be competitive, perceptive
`
`NAFEM companies know that sensible global business strategies include sourcing certain
`
`products from nearby countries, such as Canada and Mexico, especially when building efficient
`
`supply chains.
`
`II.
`
`NAFEM’s Position on USMCA
`
`NAFEM members applaud the United States’ negotiation and signing of the USMCA
`
`Agreement, which is the successor trade agreement to the trilateral North American Free Trade
`
`Agreement (NAFTA) that has been in effect since 1994. The USMCA is both a welcome update
`
`to NAFTA and a supported trade development for NAFEM members and the food equipment
`
`and supply industry. The USMCA is anticipated to continually allow NAFEM members to
`
`integrate production supply networks, as well as facilitate robust North American trade in the
`
`foodservice equipment and supplies industry.
`
`NAFEM also supports the USMCA because it provides market certainty and a stable
`
`legal paradigm to continually improve market access, integrate markets, production networks,
`
`and trade in the North American market, which is the biggest market for U.S. exporters in the
`
`world. NAFEM appreciates that the USMCA further assists American manufacturing workers by
`
`ensuring higher work standards and better wages in the region.
`
`Unfortunately, an opportunity was neglected when the USTR did not use the USMCA as
`
`a means to end or exempt the Section 232 tariffs covering steel and aluminum imports from
`
`

`

`Honorable Secretary Barton
`December 20, 2018
`Page 4 of 5
`
`
`Canada and Mexico. NAFEM members are concerned with increased tariffs recently imposed
`
`NAFEM Comments Re: ITC Inv. No. TPA-105-103
`
`by the Section 232 tariffs on products from Mexico and Canada, which were not exempted
`
`under USMCA. NAFEM encourages the United States to utilize any ongoing negotiations as an
`
`opportunity to waive or terminate Section 232 tariffs imposed on Canadian and Mexican
`
`aluminum and steel. In the NAFEM members’ experience, Section 232 tariffs have contributed
`
`to increased prices, supply shortages and decreased company profits, all leading to the
`
`potential to reduce high-quality manufacturing jobs for American workers. Therefore, NAFEM
`
`respectfully urges the administration to quickly work to negotiate trade solutions that do not
`
`include tariffs that tax manufacturers and ultimately hurt American workers and consumers.
`
`III.
`
`Conclusion
`
`NAFEM appreciates the Commission’s and the USTR’s consideration of this written
`
`submission and the opportunity to submit comments regarding the likely impact of the USMCA
`
`on NAFEM members and its industry. Please do not hesitate to contact us, if you have any
`
`questions regarding the comments.
`
`
`
`
`
`

`

`NAFEM Comments Re: ITC Inv. No. TPA-105-103
`
`Honorable Secretary Barton
`December 20, 2018
`Page 5 of 5
`
`
`
`
`Respectfully submitted,
`
`
`Charlie Souhrada, CFSP
`Vice President, Regulatory & Technical Affairs
`North American Association of Food Equipment Manufacturers (NAFEM)
`161 N. Clark Street, Suite 2020
`Chicago, IL 60601
`Phone: (312) 821-0212
`Email: csouhrada@NAFEM.org
`
`
`
`
`