Archived Content

With President's Asia Trip, Trade Again at the Forefront

Apr 23, 2014

President Obama's trip to Asia (schedule) will highlight the importance of global trade, especially the negotiations over the Trans-Pacific Partnership (TPP). Rightfully so.

The potential benefits of an ambitious, high-standards trade agreement among the United States and the 11 others countries involved in the TPP negotiations are tremendous. (The countries being Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.)

As Business Roundtable reported in its national fact sheet on the trade negotiations, the TPP would expand trade with a vast portion of the global economy:

  • In 2012, 45 percent of U.S. goods exports went to TPP countries.
  • The United States exported about $598.3 billion worth of goods in 2012 and $110.8 billion worth of services in 2011 to the six TPP countries that are current U.S. free trade agreement (FTA) partners – Australia, Canada, Chile, Mexico, Peru and Singapore.
  • The United States exported $90.8 billion in goods in 2012 and $49.1 billion in services in 2011 to five TPP countries that are not current U.S. FTA partners – Brunei, Japan, Malaysia, New Zealand and Vietnam.

BRT developed state fact sheets as well, detailing the economic growth and jobs that would result from a completed Trans-Pacific Partnership agreement. (See also BRT's Bottom Line.) It's important to note that the TPP would be far-reaching, not only dealing with tariffs but also issues such as protection of intellectual property, protections of investment and cross-data flows, and regulatory cooperation.  

In his travels, President Obama should also stress the importance of Congress passing Trade Promotion Authority legislation, which expired in 2007. As the BRT-led Trade Benefits America Coalition argued in a letter this month to the Senate Finance and House Ways and Means Committee, Trade Promotion Authority would:

  • reassure our trading partners that Congress supports high-standard and market-opening outcomes in these negotiations;
  • help ensure Congress and other stakeholders have input; and
  • help facilitate Congressional review and consideration of these agreements. 

Opposition to the authority has gained some ground, sadly too often via scaremongering and conspiracy theories, so Presidential leadership is critical for passage of of TPA, legislation that would lead to more exports, economic growth and U.S. jobs. 

We use cookies to give you the best experience when using our website. You can click “Accept” if you agree to allow us to place cookies. For more information, please see our Cookie Notice.