Industry News

Trans Pacific Partnership Agreement Has Been Reached, Benefitting SIA Members with Reductions in Trade Barriers

October 8, 2015 | 0 Comments



On Monday, an agreement was reached on the Trans Pacific Partnership (TPP) between the United States and eleven Pacific Rim nations. Representing 40% of world trade, and the destinations for over 60% of US exports, the groundbreaking partnership represents the largest trade agreement reached since the formation of the World Trade Organization in 1995. The agreement includes elimination of nearly 18,000 different taxes on American-made exports, and should help many SIA members with tariff reductions and other benefits. The White House TPP Fact Sheet gives an overview of the TPP and lists the benefits that the agreement will provide for many US manufacturers and service providers. Here is the official statement from SIA’s General Counsel, Mark Muedeking:

 On Monday, October 6, the United States and eleven other Pacific Rim nations (Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam) reached agreement on the Trans-Pacific Partnership free trade agreement (TPP).

 While the details of the agreement are confidential, the major areas covered by the TPP include the reciprocal elimination of tariffs and other trade barriers, customs matters, environmental and labor protection, protection of intellectual property rights, the liberalization of government procurement and trade in financial and other services, and investor protection.  Of particular interest to SIA members are likely tariff eliminations on imports from TPP member countries for goods that meet the applicable origination requirements.

 The text of the agreement has not yet been made public. 

The TPP has to be ratified by Congress and the eleven other countries participating in the negotiations. Under the Trade Promotion Authority legislation passed earlier this year to allow the fast-tracking of trade agreements like the TPP, President Obama must wait 90 days before he can sign the agreement and send it to Congress.  The text of the TPP must be made public for at least 60 days during that period.

 We will continue to monitor developments with respect to the TPP and provide updates as more information becomes available.

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