Trans-Pacific Trade Case Study

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Negotiations on the Trans-Pacific Partnership Trade are still currently underway. When finished, it will govern 40 percent of the United States’ imports and exports.
There are a few facts regarding the Trans-pacific Trade agreement; it is a proposed free trade between the U. S and 11 other countries bordering the Pacific Ocean (Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam). The total gross domestic product of the parties involve is about $27.7 trillion, comprising 40 percent of global GDP and one-third of world trade. The goal is to remove tariffs on goods and services, which will allow competitive organizations to participate in new markets, hire workers at better wages,
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According to the Footwear Distributor and Retailer of America (FDRA) President Matt Priest, the agreement has the potential to permanently end all footwear import taxes from TPP partners on the first day of implementation. This could save the industry a quarter of a billion dollars in taxes alone – money that can be reinvested back into jobs, product development and savings for consumers. FDRA believes that delivering value to American consumers and growing innovative jobs in the footwear industry should be the U.S. Government’s top priority in the negotiations. 300,000 American footwear jobs should not be held hostage by a select few.
The shoe tariff was implemented as a protectionist measure in the 1930’s. It was to help protect a strong domestic footwear industry, but ended in the late 1970’s when production began to move offshore. From the American Apparel & Footwear Association’s 2013 stats report in 2012, more than 98.6 percent of the shoes purchased in the U.S. were produced outside the U.S., which leaves about 1.3 percent consumed footwear manufactured domestically to a total of
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The Negotiation is still active and very secretive regarding the Trans-Pacific Trade, and there are pros and cons for the 12 countries involved based on some of the documents that have been released. For Canada, it would affect its supply-managed industries. The prices of milk, cheese, eggs and poultry are regulated in Canada by carefully controlling the amount of each that is allowed to be produced domestically and placing high tariffs on imports. One advantage is that it will open markets for goods and service. However, it will also lose some domestics market share. In addition, household income gains $3.35B by 2035 and loses $2.04B by abstaining. In the case of Vietnam, the deal will open up a huge market for export, including to those countries where Vietnam has not yet signed a bilateral free trade agreement, including the United States, Canada and Mexico. The country’s gross domestic product is expected to increase by 26.2 billion U.S. dollars. Some of the challenges that Vietnam would be facing are requirements of origin, copyrights, transparency, equal treatment for SOEs and private sectors. New Zealand sees more roadblock than gain from the information that they have received so far. The New Zealand dollar is one of the world’s most traded currencies. Overseas investment makes up a significant part of the economy and the mainly foreign-owned banks operating in New Zealand have at times held
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