By Sara Germano and William Mauldin
Nike Inc. is pledging support of trade legislation backed by
President Barack Obama on the grounds that it would allow the
sportswear maker to create thousands of domestic jobs over the next
10 years. But some rivals don't see it that way.
The sporting gear giant used an appearance by the president at
its headquarters Friday to say it could create up to 10,000
manufacturing and engineering jobs in the U.S. over the next decade
if the Trans-Pacific Partnership still under negotiation is
approved.
Domestic manufacturers and the trade groups that represent them,
however, worried that an easier path for imports could hurt jobs
elsewhere.
"Whatever job gains Nike is promising, even assuming that they
occur, is questionable considering the losses that would result at
existing U.S. manufacturers because of the drop on tariffs," said
Marc Fleischaker, trade counsel to the Rubber and Plastic Footwear
Manufacturers Association, a group which represents U.S.-based
manufacturers in matters of trade and legislation.
A drop on tariffs between signatories to a Pacific trade deal
could put pricing pressure on companies that already produce goods
here, which could force job cuts, Mr. Fleischaker said.
Boston-based New Balance said it employs about 1,400
manufacturing workers at five factories in New England. Spokesman
Matthew LeBretton acknowledged there are concerns among U.S.
footwear manufacturers about how a trade pact might affect the
industry, but cautioned that it is premature to discuss exactly how
without knowing final terms of the legislation.
"We've had productive discussions with the Obama administration
regarding TPP, and we're hopeful that the final agreement will
reflect those discussions and will allow us to continue to thrive
as a domestic producer," Mr. LeBretton said.
Nike isn't putting much detail around its argument of added
jobs, including how lower tariffs would help and where they would
be created.
"It's too early to say specifically where investments would be
within the U.S.," spokesman Reggie Borges said. He said relief from
overseas duties would help Nike expand its American supply chain.
He said that Nike has 26,000 employees in the U.S., and 56,500
world-wide, not including workers at its contract factories.
Mr. Obama visited Nike headquarters in Beaverton, Ore., on
Friday to gain support for the trade agreement under negotiation
between the U.S. and 11 other countries. Its primary goal is to cut
or eliminate tariffs between members. That includes Vietnam, where
much of Nike manufacturing takes place, and where import tariffs
can reach 20% of their value at the border.
The president's choice of Nike to make his comments drew
critics. "Nike represents how moving things overseas hurts American
manufacturing," said Kelley Roy, founder of the local trade group
Portland Maker Community, which declined an invitation to appear
with Mr. Obama at Nike on Friday.
Write to Sara Germano at sara.germano@wsj.com and William
Mauldin at william.mauldin@wsj.com
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