Biden Unveils $2 Trillion Infrastructure Plan

President Biden released his $2 trillion infrastructure plan this week, which would be paid for in part by corporate tax rate increases. The plan calls for massive investment in traditional transportation initiatives – rail, bridges, roads, and mass transit – as well as funding for clean energy, electric vehicle development, broadband internet, housing, public school buildings, domestic manufacturing, and in-home elderly care. It would also raise the corporate tax rate from 21 percent to 28 percent and make other tax changes aimed at multinational corporations. We will discuss the infrastructure plan in detail on next Tuesday's FDRA Weekly Check-In Call.

Recent Developments on Footwear Trade

China: Last week, the Biden Administration announced a global approach to confront serious human rights allegations against China over the treatment of its Uyghur population. The U.S. coordinated with the EU, Canada, and the UK to impose sanctions on Chinese officials connected to Xinjiang. Following the announcement, many U.S. footwear and apparel companies that previously issued statements on Xinjiang faced calls for boycotts in China. On our weekly call, we will provide the latest updates on this key issue.

Myanmar (Burma): U.S. Trade Representative (USTR) Katherine Tai announced Monday the U.S. will immediately suspend its trade and investment agreement with Myanmar, following violence against civilians from a military coup in the country. The Administration also imposed sanctions on two entities connected to the military regime. While this action does not halt U.S. trade from Myanmar, as the violence continues, the U.S. could take additional action including an import ban.

301 Investigation Into Digital Service Taxes: The U.S. announced it will move forward with the 301 process launched by the Trump Administration in 2020 against the digital service tax regimes in Austria, India, Italy, Spain, Turkey, and the UK. The U.S. is working to reach an international agreement on this issue; however, 301 tariffs are still on the table, and the proposed list of targeted goods from Italy, Spain, and the UK includes some footwear lines. With the comment process now open, FDRA will submit comments to the Administration opposing any footwear tariffs.

Footwear Intellectual Property in Focus

A bipartisan group of Senators recently introduced a bill to provide greater accountability for third-party sellers on e-commerce platforms. The INFORM Consumers Act (S. 936) would require platforms to verify the identity of high-volume third-party sellers and require these sellers to disclose to consumers their name, business address, email address, and phone number. The bill would also create a hotline for consumers to report suspicious marketplace activity to the platform. Similar legislation is expected to be introduced in the House in the coming weeks. FDRA will explore this bill and other key footwear IP issues in depth next month at the Footwear IP Digital Summit. The event features conversations with CBP, leading footwear brands, and IP experts. View the agenda and register here: