Overall U.S. Benefits

1025
Overall U.S. Benefits
Overall U.S. Benefits

TPP levels the playing field for American workers and American businesses by eliminating over 18,000 taxes that various countries impose on Made-in-America exports, providing unprecedented access to vital new markets in the Asia-Pacific region for U.S. workers, businesses, farmers, and ranchers. For example, TPP will eliminate and reduce import taxes—or tariffs—on the following Made-in-America exports to TPP countries:

U.S. manufactured products: TPP eliminates import taxes on every Madein-America manufactured product that the U.S. exports to TPP countries. For example, TPP eliminates import taxes as high as 59 percent on U.S. machinery products exports to TPP countries. In 2014, the U.S. exported $56 billion in machinery products to TPP countries.

Overall U.S. Benefits
Overall U.S. Benefits
  • U.S. automotive products: TPP eliminates import taxes as high as 70 percent on U.S. automotive products exports to TPP countries. In 2014, the U.S. exported $89 billion in automotive products to TPP countries. Right now, car engines manufactured in Michigan face tariffs up to 55 percent in TPP countries. Thanks to TPP, those taxes will drop to zero. As part of TPP, we have also reached agreement with Japan to remove the non-tariff barriers that have kept U.S.-made autos, trucks and parts out of that important market. ͦ
  • U.S. information and communication technology products: TPP eliminates import taxes as high as 35 percent on U.S. information and communication technology exports to TPP countries. In 2014, the U.S. exported $36 billion in information and communication technology products to TPP countries – which include, for example, devices, including smart phones; and equipment, including routers and computers.
  • U.S. agriculture products: TPP cuts import taxes on Made-in-America agricultural exports to TPP countries. Key tax cuts in the agreement will help American farmers and ranchers by expanding their exports, which provide roughly 20 percent of all farm income in the United States. For example, TPP will eliminate import taxes as high as 40 percent on U.S. poultry products, 35 percent on soybeans, and 40 percent on fruit exports. Most U.S. farm product exports will receive duty-free treatment immediately; over 50 percent of U.S. farm products (by value) will enter Japan duty free once the agreement is implemented.

    Overall U.S. Benefits
    Overall U.S. Benefits
  • Poultry: American farmers exported $2.7 billion to TPP countries in 2014, despite significant barriers. These include tariffs of 20 percent on American poultry to Vietnam, whether it’s from Arkansas or Delaware. TPP eliminates those tariffs.
  • ͦ Beef: Japan places tariffs of 38.5 percent on American beef, whether it’s from Texas, Montana, or Nebraska. These tariffs will be reduced to 9 percent. With over $1.6 billion in annual sales in 2014, Japan is our largest export market for beef. Under the TPP agreement, Japan will eliminate duties on 74 percent of its beef and beef product tariff lines within 15 years. Tariffs will be cut on the remaining tariff lines.
  • Pork: Japan accounts for almost $2 billion in pork exports in 2014— about one-third our pork exports – despite tariff barriers. Under the TPP agreement, Japan will eliminate 80 percent of its pork tariffs in 11 years, and make steep cuts in those that remain. Under TPP, we’re going to reduce Japan’s tariff on all pork and eliminate the current 20 percent tariff on ground seasoned pork, worth $435 million annually to U.S. exporters.
  • Dairy: Japan has a tariff of 40 percent on cheese from the United States, which will be eliminated in TPP. The United States exported $3.6 billion of dairy to TPP countries in 2014. In the case of Canada, passing TPP means renegotiating NAFTA, which didn’t provide any direct benefits for dairy. Under TPP, we’ll be able to sell more than 4,000 additional tons of butter, nearly 14,500 additional tons of cheese, and more than 50,000 additional tons of liquid milk to Canada. Plus more to Japan, Malaysia, and Vietnam.
  • Wine/Bourbon: Currently, we sell $86.5 million per year in wine to Japan. But wine is taxed at levels up to 58 percent when we send the product to Japan. TPP will reduce those taxes down to zero, allowing us to sell more California wine to Japan. Kentucky distillers will no longer face taxes as high as 55 percent when they sell their world-famous bourbon to TPP countries.
  • Soybeans: Japan has a 21 percent tariff on American soybean oil, $288 million of which were exported to TPP countries in 2014. TPP will eliminate Japan’s tariff.
  •  Additionally, TPP will help American farmers and ranchers compete by tackling a range of barriers they face abroad, including ensuring that foreign regulations and agricultural inspections are based on science, eliminating agricultural export subsidies, and minimizing unpredictable export bans.