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October 12, 2015

Highlights of TPP Agreement


The TPP negotiations have come to an end as of October 5, 2015. This includes large cuts to tariffs in U.S. exports, and new standards for customs, labor and ecommerce. The countries participating in this are the U.S., Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

Highlights of the new agreement are outlined in a White House fact sheet:

  • U.S. manufactured products:  TPP eliminates import taxes on every Made in America manufactured product that the U.S. exports to TPP countries.  For example, TPP eliminates import taxes as high as 59 percent on U.S. machinery products exports to TPP countries. In 2014, the U.S. exported $56 billion in machinery products to TPP countries.
  • U.S. agriculture products: TPP cuts import taxes on Made in America agricultural exports to TPP countries. Key tax cuts in the agreement will help American farmers and ranchers by expanding their exports, which provide roughly 20 percent of all farm income in the United States. For example, TPP will eliminate import taxes as high as 40 percent on U.S. poultry products, 35 percent on soybeans, and 40 percent on fruit exports. Additionally, TPP will help American farmers and ranchers compete by tackling a range of barriers they face abroad, including ensuring that foreign regulations and agricultural inspections are based on science, eliminating agricultural export subsidies, and minimizing unpredictable export bans.
  • U.S. automotive products: TPP eliminates import taxes as high as 70 percent on U.S. automotive products exports to TPP countries. In 2014, the U.S. exported $89 billion in automotive products to TPP countries.
  • U.S. information and communication technology products: TPP eliminates import taxes as high as 35 percent on U.S. information and communication technology exports to TPP countries. In 2014, the U.S. exported $36 billion in information and communication technology products to TPP countries.

As the agreement makes its way into Congress, it could see some push-back. Check back for updates to this decisive trade agreement.

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