|Trans-Pacific Partnership Signed by President Obama|
Trans-Pacific Partnership Signed by President Obama
President Obama signed the bipartisan trade package known as the Trans-Pacific Partnership (TPP), which will enhance trade and investments with China and South Asia partners for all businesses of all sizes and sectors. In order to compete in the 21st Century global economy, Michigan businesses need opportunities and options to engage in those new markets abroad. We would like to thank all three of the tri-county area Congressional Representatives who voted in favor of TPP (Mike Bishop, John Moolenaar, & Tim Walberg).
The following information regarding the economic impact for the State of Michigan through the Trans-Pacific Partnership was provided by the Office of the United States Trade Representative, which is part of the Executive Office of the President of the United States of America:
The Trans-Pacific Partnership Would Expand Market Access
The Trans-Pacific Partnership (TPP) offers tremendous opportunities for U.S. exporters. TPP members comprise a population of roughly 800 million and these dynamic economies generate nearly 40 percent of global GDP. The United States already has strong trade and investment ties to this region; we exported $697.8 billion in goods to all TPP markets in 2013, or about 44 percent of total U.S. exports, and are seeking through TPP to further deepen our economic relations.
Michigan Depends on World Markets
Michigan’s export shipments of merchandise in 2013 totaled $58.5 billion. Michigan exported $39 billion annually in goods to all TPP markets (2011-2013 average). Michigan’s goods exports to all TPP markets increased by 16 percent from 2011 to 2013. During this period, 70 percent of Michigan’s total goods exports went to the TPP region. The top three product categories exported to TPP-member economies in 2013 were transportation equipment, machinery manufactures, and chemical manufactures.
Goods Exports Support Jobs for Michigan Workers
Jobs supported by Michigan’s goods exports were about 296,000 in 2011 (latest available data) according to a USTR estimate based on U.S. Department of Commerce data. In 2011 (latest available data), over one-quarter (30.7 percent) of all manufacturing workers in Michigan depended on exports for their jobs. Additional jobs also are supported by Michigan’s exports of services, although there are no available data on this.
Goods Exports Sustain Thousands of Michigan Businesses
A total of 15,107 companies exported goods from Michigan locations in 2012 (latest available data). Of those, 13,535 (89.6 percent) were small- and medium-sized enterprises, with fewer than 500 employees.
Michigan Small and Medium-Sized Firms Will Benefit From Trans-Pacific Partnership FTA Provisions
Small- and medium-sized firms generated one-fifth or 19.9 percent of Michigan’s total exports of merchandise in 2012 (latest available data). Small- and medium-sized firms benefit from the tariff-elimination provisions of free trade agreements, as well as many of the other commitments in the agreement. Trade facilitation, for example, is vital to small- and medium-sized firms, as is enforcement of their intellectual property rights, streamlining of regulatory issues, and other commitments.
Note: The Asia Pacific Region is defined as APEC countries; TPP partner countries are Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.