There's plenty of emotion with trade deals. They change the game and cause disruption. And that can be scary. In reality the new Trans-Pacific Partnership (TPP) agreement reduces tariffs and trade barriers for the 12 participating countries, and allows more trade to occur. That will cause business shifts but also raise the water level for all.
TPP will make it easier for entrepreneurs, SMEs and corporations - in manufacturing, services, agriculture and other industries - to sell products in the other 11 countries by eliminating taxes and other trade barriers. There are 18,000 such barriers that will be eliminated for American products.
The 12 countries involved so far are...
- United States
- New Zealand
These countries account for 800 million people, 37% of global GDP and 45% of total U.S. goods exports. Current trade with these countries supports 4.2 million jobs in the U.S. relating to exports of goods and services.
Read more about the numbers HERE from the U.S. Department of Commerce, International Trade Administration.
The Office of the U.S. Trade Representative has done a good job of summarizing TPP at least from the standpoint of benefits for U.S. companies. Please read through the USTR summaries and reports to learn more about how you'll be able to benefit from the changes coming once TPP is agreed upon by the participating countries.
Here also is a recent television interview by the Global Chamber CEO/founder on TPP that summarizes the benefits for U.S. companies: PBS Horizon. Similar benefits are coming for exporters, importers and investors in all 12 countries.
Change is hard. And reducing barriers does create changes. But it is our belief that with less barriers, trade increases and those companies and countries with strong products and services will ultimately benefit. And so that is why based on our understanding of TPP, the agreement is a strong step forward with international trade.
Will you and your business be taking advantage of the changes?