(January 10, 2012) The California Chamber of Commerce recently sent a letter to U.S. Trade Representative Ron Kirk supporting participation by Canada, Japan and Mexico in the Trans-Pacific Partnership (TPP) Trade Agreement negotiations. CalChamber is urging businesses to send letters of support of their expression of interest to the trade representative by this Friday, January 13.
Trans-Pacific Partnership
On November 12, 2011, the Leaders of the nine Trans-Pacific Partnership countries—Australia, Brunei Darussalam, Chile, Malaysia, New Zealand, Peru, Singapore, Vietnam, and the United States—announced the achievement of the broad outlines of an ambitious, 21st-century TPP agreement that will enhance trade and investment among the TPP partner countries, promote innovation, economic growth and development, and support the creation and retention of jobs. U.S. President Barack Obama, along with the other eight TPP leaders, agreed to seek to finalize an agreement in 2012.
Canada, Mexico and Japan have stated their intent to join the TPP negotiations.
Impact on the California Economy
California is one of the 10 largest economies in the world with a gross state product of approximately $1.9 trillion. International-related commerce accounts for approximately one-quarter of the state’s economy.
The Asia-Pacific region is a key driver of global economic growth, representing nearly 60% of global GDP and roughly 50% of international trade. Since 1990, Asia-Pacific goods trade has increased by 300%, while global investment in the region has increased by more than 400%. U.S. trade with Asian countries totals nearly $1 trillion annually.
Even though U.S. exports to Asia continue to rise, the United States is gradually losing market share. Asian countries have negotiated more than 160 trade agreements among themselves, while the United States has signed only three (with Korea, Singapore and Australia).
Because of California’s location covering the majority of the West Coast, the state has much to gain with the TPP agreement. In 2010, California exported almost $12 billion to these select countries, roughly 14 percent of the United States’ exports.
The TPP Trade Agreement will bring real benefits for U.S. workers and businesses and help maintain America’s leadership position in an increasingly competitive global environment.
Action Needed
Please submit comments in support of Canada’s, Japan’s and Mexico’s expression of interest to the Office of the U.S. Trade Representative by Friday, January 13. For more information visit the CalChamber international trade page at www.calchamber.com/international.
Staff Contact: Susanne Stirling