This document discusses the benefits of the Trans-Pacific Partnership (TPP) for American businesses and exports. It outlines key objectives such as eliminating tariffs to increase market access for American goods in TPP countries. The TPP would boost exports of American agricultural products, manufactured goods, and automotive parts by removing barriers. It also aims to open up government procurement contracts which represent 5-10% of economies. Specific sectors that would benefit include automobiles, agriculture, and poultry exports to countries like Vietnam, Japan, and Malaysia. Overall, the TPP seeks to increase American competitiveness through $1.8 trillion in existing trade and an estimated $124 billion in additional exports annually.

1. America’s Competitive Edge
1.2 TransPacific Partinership Pact
Shawn Goh
Key Sectors
Benefits for America
Singaporean
Alumni
NYU
&
Columbia
‘15

2. US-ASEAN Alliance, Export Opportunities, Battleground of Trade War
America’s Final
Competitive Edge?

3. Barriers of Entry
CUSTOMS, TRADE FACILITATION AND RULES OF ORIGIN
• Commitments that will ensure the quick release of goods through customs, expedited procedures
for express shipments, advance rulings, and transparent and predictable customs regulations;
• Strong customs cooperation commitments in order to ensure that TPP countries work together to
prevent smuggling, illegal transshipment, and duty evasion, and to guarantee compliance with
trade laws and regulations; and
• Strong and common rules of origin to ensure that the benefits of TPP go to the United States and
other TPP countries, and also that TPP promotes the development of supply chains in the region
that include companies based in the United States.
DEVELOPMENT AND TRADE CAPACITY-BUILDING
• Agreement on cooperative development activities TPP countries could conduct to promote broad-
based economic growth and sustainable development, including public-private partnerships,
science and technology cooperation
• Mechanisms for collaboration and facilitation of capacity-building activities by both TPP
government and non-government representatives, as well as the private sector, in order to help
TPP workers and businesses, including SMEs and micro- enterprises participate in global trade
and take advantage of the agreement.
America’s Competitive Edge

4. TPP & Bilateral Trade Agreements
America’s Competitive Edge

6. consumers
An
additional
$123.5
billion
in
U.S.
exports.
+$124
Billion
793
Million
$28.1
Trillion
$689.1
Billion
Goods
Exports
to
TPP
Countries
Combined GDP
Economic
Value
of
TPP
countries
• US-­‐TPP
Trade:
$1.8
trillion
in
goods
and
private
services
in
2012
• 37%
of
total
TPP
combined
• Top
U.S.
Markets
in
TPP:
• Canada
($354
b),
• Mexico
($243
b),
• Japan
($116
b).
• U.S.
SMEs
accounted
for
29%
of
the
total
value
of
goods
exports
to
TPP
America’s Competitive Edge

7. USA Key Objectives
• Elimination of tariffs and commercially-meaningful market access for
U.S. products exported to TPP countries
• Provisions that address longstanding non-tariff barriers, including
import licensing requirements and other restrictions.
Why? USA ships more than:
• $1.9 billion in goods to TPP countries DAILY total of 693.5 billion
per year.
• Exported more than $622.5 billion of manufactured products to TPP
countries in 2013.
America’s Competitive Edge

8. Elimination of TPP countries’ tariffs
• Industrial goods
• Food / Agriculture products
• Textiles
• Manufactured products
• Industrial / Electrical machinery
• Precision / Scientific instruments
• Chemicals
• Plastics
Key US exports

9. Key Export Categories
Excluding Services- Manufacturing Exports: $619B - Up 52 % from 2009
• Machinery $109 billion
• Electrical machinery $83 billion
• Vehicles $82 billion
• Mineral fuel (oil) $58 billion
• Plastics $33 billion
Agricultural Exports: $59.2 billion in 2012. Up by 36 % from 2009
• Corn $5.7 billion
• Pork and Pork Products $4.3 billion
• Soybeans $3.6 billion
• Beef and Beef products $3.3 billion
• Fresh fruit $3.1 billion
America’s Competitive Edge

11. Target Change Sectors:
Some examples
• Automobile Industry
• Farm / Agriculture
• Government Procurement
America’s Competitive Edge

12. Automotive Industry (Vietnam & Japan)
• Some U.S. auto parts currently face a 27% tariff entering Vietnam.
• Other countries that have an FTA with Vietnam, such as China, Thailand,
and Indonesia, export their auto parts to Vietnam duty free.
• By eliminating duties U.S. auto parts companies face, TPP would help
boost their competitiveness in the Vietnamese market.
US - JAPAN BILATERAL NEGOTIATIONS
• Japan is currently the 4th-largest goods trading partners of the US.
• The US exported $65 billion in goods and an estimated $48 billion in
services to Japan in 2013.
America’s Competitive Edge

13. Farm / Agricultural (Malaysia)
• 20% of U.S. farm income comes from agricultural exports and those
exports support rural communities.
• In fact, U.S. food and agricultural exports to the world reached an
all-time high in 2013 of over $148 billion.
• Of that total, we exported more than $58 billion to TPP countries –
a figure that would increase as a result of tariff elimination under
TPP.
• U.S. poultry currently faces a 40-percent tariff in Malaysia. U.S.
poultry would become more affordable in Malaysia under a TPP
agreement that reduces these duties to zero.
• Poultry is a key commodity for the region because majority of the
ethnic groups do not consume Pork or Beef (Islamic / Indian).
America’s Competitive Edge

14. GOVERNMENT PROCUREMENT
• Government tenders represent an
estimated 5-10% of a country’s
economy with the TPP businesses and
workers.
America’s Competitive Edge
Contrasting Business Culture and
Government policies between USA
and Rest of the world.