Clearit.ca's Blog on Customs Brokerage and News Updates
With news of a recent Trans-Pacific Partnership businesses in 12 different countries, including Canada, have a lot of potential gain to be had. The partnership has been tagged as the biggest trade deal since the North American Free Trade Act of 1993. However, details of the agreement are being kept under tight wraps. The 11 other nations that are all included in this deal with Canada are:
- United States
- New Zealand
Although details of the “fresh off the press” deal are being safeguarded for now, there is a 30 chapter summary that was released by the U.S. Trade Representative. As mentioned before, there is a lot of potential for all the nations involved, in particular, the United States. Currently, an average of 45% of all U.S. goods are already flowing through the other 11 countries, and the new deal will remove close to 18,000 tariffs on U.S. goods.
“If we can get this agreement to my desk, then we can help our businesses sell more Made in America goods and services around the world, and we can help more American workers compete and win,” said President Barack Obama.
In everyday life, no one wants to endorse a product or a service he or she has never seen perform before. The same can be said here. The National Association of Manufacturers and the Business Roundtable love what U.S. officials are doing with their completion of this agreement. However, they are not ready to put their stamp on it until they read the details when released.
“We will evaluate the details carefully and work to defeat this corporate trade deal if it does not measure up,” said AFL-CIO President Richard Trumka.
Small & medium sized businesses stand to gain
For small to medium-sized businesses, some say this agreement will have a profound impact on them for the better. There is a chapter in the TTP that speaks of companies this size gaining from this new deal. The language states that all 12 nations will create an online website that will target businesses this size and break down the details of the new agreement, and how they all can take full advantage of it. In addition, the TPP is approving for an international committee to oversee the progress and evaluate ways to enhance it going into the future.
“TPP is the first trade deal to ensure small businesses stand to gain from global trade by dedicating a chapter specifically to breaking down the barriers to exporting faced by small businesses,” said SBA Administrator Maria Contreras-Sweet.
Only 5 percent of U.S. small businesses now export, which means there’s “huge potential for small businesses to expand their businesses by exporting,” the White House said.