New Trade Pact Can Bring Holiday Cheer and Jobs to America
This week in Auckland, New Zealand, countries negotiating the Trans-Pacific Partnership (TPP) received a little early holiday cheer as Canada and Mexico entered into their first full round of negotiations – the 15th round of talks for the initiating parties.
With the addition of Canada and Mexico, the world’s 11th and 14th largest economies respectively, roughly 30% of world GDP will be encompassed in the TPP’s new high standard rules governing trade and investment.
As the U.S. Chamber testified before the Office of the U.S. Trade Representative regarding Canada and Mexico, the inclusion of these two allies into the negotiation process is sound economic strategy for the United States: Canada and Mexico are the two largest markets in the world for U.S. exports, purchasing nearly one-third of U.S. goods ($479 billion in 2011) and supporting 14 million U.S. jobs. For these North American partners, TPP represents a critical opportunity to modernize an already strong economic relationship, and deepen the trilateral integration that makes each country more competitive in the global arena. As noted in the U.S. Chamber’s recent report NAFTA Triumphant, U.S., Canadian, and Mexican supply chains and production processes are deeply integrated ensuring that both countries provide export platforms for U.S. products, with a high proportion of U.S. content in exports from both countries.
That means when Canada and Mexico export goods, U.S. workers win.
This holiday season, we’re asking Santa for some good news on a successful conclusion to the negotiations in 2013. The U.S. Chamber’s Catherine Mellor thinks we’re holding on the “nice” list, hoping for a 2013 TPP announcement. If so, 2013 will be a great New Year for U.S. global competitiveness and also for the global rules-based trading system.