Washington Business Fall 2016 | Washington Business | Page 47

business backgrounder | economy

That’s a good reason for Congress to ratify the TPP, but it’s far from the only reason, say supporters who range
from President Barack Obama to the thousands of small employers whose goods would find ready markets overseas.
Negotiated over seven years with 11 other Pacific Rim countries, the TPP includes the kinds of labor and
environmental protections that are standard (and mandated) for manufacturers and businesses in the United States.
By bringing those workplace rules to our closest trading partners, American employers would have a more level
playing field for American-made products.
The TPP also stands as the template for future trade deals, ensuring that American values and interests are wellrepresented in the years ahead, supporters say. When in force, the TPP will be the largest free trade pact in the
world, representing about one-third of global output. Being the one to shape that kind of agreement is important
for the United States, Obama said.
“The TPP means that America will write the rules of the road in the 21st
century,” Obama said in explaining his strong support for the deal. “If America
doesn’t write those rules, then countries like China will.”

at a glance

examining the impact
The new study of the TPP’s impact for the Washington state economy is called
“Wins for Washington: Economic Impacts of the Trans-Pacific Partnership on
Washington State.”

“As this study indicates, every year we do not
implement the TPP is another year we are losing out
on opportunities to reach our full economic potential.
We already lost up to $8.7 billion and 26,000 direct
jobs by not having the agreement in place. It’s urgent
that Congress approve the agreement this year. The
TPP is our opportunity to improve the way the world
trades and create new opportunities for Washington
employers and workers.”
— Eric Schinfeld , president, Washington Council on International Trade

The Trans-Pacific Partnership (TPP) is a
trade deal between the United States and 11
Pacific Rim nations. The TPP would ensure
that America sets the standards for global
trade — and that American workers benefit,
especially in Washington state.
The final TPP was signed in February 2016
by 12 Asia-Pacific nations, including the
United States. For the purposes of the study,
the TPP was applied retroactively and data
was calculated for 2015. The study revealed
that if TPP had been in place last year,
Washington’s exports could have been up to
$8.7 billion higher. That would have meant
the state created 26,400 more direct jobs
(and as many as 47,000 indirect jobs).
With 40 percent of Washington jobs tied
to trade, the TPP would be a boost to the
state’s economy. A few examples: Agriculture
would see elimination of tariffs as high as
208 percent. Software and high-tech would
benefit from improved cross-border data
flows and intellectual property protection.
Aerospace would see increased demand as
partner economies grow.
Signatories to TPP are: Australia, Brunei,
Canada, Chile, Japan, Malaysia, Mexico,
New Zealand, Peru, Singapore, the United
States and Vietnam. The next step, after the
agreement was finalized in February, is for
individual countries to ratify the agreement
and Congress to approve it.

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