American Businesses Realize the Benefits of TPP
Stefan M. Selig is the Under
Secretary of Commerce for International Trade.
Today in New Zealand, the 12 Ministers representing
Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico,
New Zealand, Peru, Singapore, United States, and Vietnam signed the Trans-Pacific Partnership Agreement.
After more than five years of negotiations that involved engagement
from across Commerce, and in particular ITA, we are all pleased to see
all 12 TPP partners formalize the agreement.
The signing of the agreement is an important milestone
and underscores there is still a lot of work to be done to ensure that
the U.S. business community, in particular our small and medium-sized
businesses, are able to take full advantage of this agreement once it
is approved by Congress.
Working with partners across USG, ITA is playing central
role in the promotion, outreach, and the monitoring of implementation
and enforcement of the agreement. This work will intensify as we
move closer to the ratification and implementation of TPP in the U.S.
so that American businesses can fully realize the benefits of this
landmark trade agreement.
We will continue the outreach to workers, businesses,
lawmakers, and other stakeholders to explain the benefits of TPP. TPP
will open access to markets representing 40% of global GDP, commit
partner markets to transparent rulemaking to prevent the rise of
burdensome regulations, is the largest expansion of labor and
environmental rights of any trade agreement in history, and deepens the
U.S. trade and investment ties among 11 Pacific Rim markets where our
exports already support more than 4 million American jobs.
We have produced reports outlining TPP created
opportunities for 15 specific industry sectors;
such as auto products, consumer goods, information technology, and
services. And, we have also produced 50 separate reports that lay out precisely how TPP will help businesses and workers in
every state. In particular, I want to highlight how TPP will benefit
four U.S. industries:
Health IT: Between electronic health
records, remote monitoring, and telemedicine, health IT is clearly
poised to be one of the key growth sectors for our economy. Once TPP is
enacted, 99.9% of U.S. health products exports will enjoy
duty-free access. TPP will also increase intellectual property
protections, which will enhance competitiveness and incentivize greater
innovation for U.S. firms. Increased deployment of health IT exports
will produce improved health outcomes and save lives every day around
Transportation Equipment: 26% of U.S.
transportation equipment exports currently go to TPP countries. TPP
will build on this strength by eliminating tariffs on transportation
exports, as well as streamlining customs requirements and increasing
trade facilitation. That is not only essential for the sale of end
products, but also for intermediate products within supply chains, like
aerospace parts exports for maintenance facilities. And, TPP will make
U.S. firms more competitive with Chinese counterparts, who currently
enjoy lower tariffs in some TPP markets.
Energy: While this represents one of
the critical growth sectors for U.S. firms, without TPP, U.S. exports
face tariffs as high as 30%. But because of TPP, U.S. firms will see
savings from eliminated tariffs worth $24 million. More importantly,
U.S. exporters will see improved access for this sector in countries
such as Japan, Vietnam, and Malysia. U.S. exports of renewable energy
equipment, such as wind turbines, currently face tariffs as high as 5%
in new TPP markets, but competing products from China face no such
tariffs. Under TPP, all tariffs on U.S. exports of renewable
energy equipment will be duty-free immediately.
Automotive Products: Prior to
TPP, U.S. auto parts exporters faced duties that added $22 million in
costs every year, in part because of tariffs as high as 50% in Malaysia
and 75% in Vietnam. Once TPP is enacted, 98.2% of U.S. auto products
exports will be eligible for immediate duty free treatment. And over
time, all of the remaining tariffs will be removed.
You can find more information on the benefits of TPP,
including our state-by-state and sector-by-sector reports, by
clicking here. Educating all interested stakeholders is the
best way to secure this crucial part of the President's trade agenda.
U.S. Exporter Finds "Lofty" Niche in Light
John Falls always had an affinity
for engineering. One day, after taking advice from his
brother-in-law, Falls partnered with long-time friend Ron Williams to
pursue a solution that would allow people to safely and easily clean
chandelier fixtures and replace bulbs without using a ladder.