Will push for congressional ratification, but urges some shortcomings in agreement be addressed
New York, N.Y., December 8, 2015 – The United States Council for International Business (USCIB) supports the Trans-Pacific Partnership Agreement (TPP) and urges members of Congress to approve TPP. After reviewing the text of the agreement and consulting with our broad cross-sectoral membership as well as our Board of Directors, USCIB believes that the TPP agreement will contribute substantially to economic growth in the United States and the region, cement U.S. global leadership and provide significant new opportunities for U.S. businesses, workers and farmers.
The TPP expands market access in the region through elimination of tariff and non-tariff barriers as well as breaking new ground in addressing growing regulatory impediments to trade. Some of the key measures include:
- Eliminates 98 percent of tariffs in the TPP region including on a wide range of U.S. agricultural exports.
- Establishes new rules protecting cross border flow of data and prohibiting forced localization of servers, while also requiring governments to ensure protection of personal information wherever it is stored.
- Sets new disciplines on state-owned enterprises, including limitations on sovereign immunity, non-commercial assistance and increased transparency requirements.
- Provides more comprehensive opening of markets for service providers through negative lists that expand the scope of opportunities for many U.S. service providers.
- Establishes disciplines on regulatory developments and creates a Regulatory Coherence Committee to help prevent emerging regulations from creating trade barriers.
- Streamlines and simplifies customs procedures throughout the region by requiring advanced rulings and other measures to improve transparency and facilitate movement at the border.
- Strengthens labor and environment provisions.
While we support TPP, we also believe that it could be improved by addressing provisions in the agreement that limit or exclude protections for certain sectors. We urge the Administration to work to address these limitations before submitting the final agreement to Congress. Dealing with these concerns would avoid any possible negative precedents for future agreements and facilitate consideration of TPP under Trade Promotion Authority.
With slowing global trade and modest economic growth forecasts, passage of the TPP is a critical act and affirmation by governments representing almost 40 percent of world GDP that protectionism is not the answer and that liberalized markets in which businesses are allowed to compete on a level playing field are the best formula for creating jobs, opportunity, innovation and spreading the rule of law more extensively in the region. This reality is already being grasped by many other countries that now aspire to join the TPP. The United States and the global economy will be better off with a TPP and USCIB will work with the Administration and Congress, as well as our global business partners, to secure passage.
USCIB promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and regulatory coherence. Its members include U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world. With a unique global network, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment. More at www.uscib.org.
Jonathan Huneke, USCIB
+1 212.703.5043, email@example.com