Top 5 Reasons to Support the Trans-Pacific Partnership

How the trade pact presents opportunities for small business to grow in new markets.

After years of negotiations and an intense week of back-and-forth deliberation in Atlanta, negotiators announced an agreement on the Trans-Pacific Partnership Monday morning.

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The deal is the largest and most substantial free trade agreement in history.

The deal is the largest and most substantial free trade agreement in history, connecting 12 global economies and 800 million consumers across the Americas and the Asia-Pacific region.

UPS has pressed for a TPP agreement for many years — it’s been a bit of a marathon, but the end is finally in sight.

The next few months will include debate about the terms of the agreement – among stakeholders in Congress, Parliaments around the world and the public at large.

We plan to educate our own workforce, customers and legislators about TPP and the opportunity it presents to drive growth and create jobs for businesses of all sizes, particularly small and medium-sized ones.

There is a lot to unpack in the agreement — and we are eager to comb through the text ourselves when it is published. But here are several ways we expect TPP to be beneficial to global supply chains, our businesses, and our customers:*

[Also on Longitudes: Unlocking Global Trade Growth]

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Expediting Customs Procedures & Removing Red Tape

Under the agreement, customs officials will require fewer documents and adopt electronic pre-arrival processing and clearance of shipments.

Packages will move through TPP countries more quickly, with fewer customs holds and more reliable delivery to customers.

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Ensuring Fair Play by Government-Run Service Providers

The agreement levels the playing field for private companies competing against government-run service providers.

The deal ensures that private companies providing services aren’t regulated by a government entity that is also a competitor.

Ultimately, these competition rules will ensure better choices for customers and more opportunities for businesses.

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Increasing Market Access for Service Providers

The deal guarantees foreign-owned service suppliers receive the same treatment as domestically-owned service suppliers in all 12 negotiating countries.

Foreign ownership restrictions in a number of key services areas are to be eliminated when the agreement comes into effect.

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Eliminating Tariffs

Many goods today are produced along complex value chains and a tariff is applied to the gross value of a good each time it crosses a border.

TPP’s tariff cuts – combined with its many other market-opening provisions – will take a lot of the cost, time and complexity out of trade.

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Support for Small Business

For the first time in any trade agreement, TPP includes a chapter focused on helping small and medium-sized businesses benefit from trade.

TPP addresses trade barriers that disproportionately challenge small business, including opaque customs regulations, complex trade paperwork, and slow delivery of small courier shipments.

Collectively, these improvements through TPP should help small and medium-sized companies make the decision to go global and expand their international business.

[Also on Longitudes: Is This Africa’s Year of Trade?]

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Trade agreements lower the barriers and costs of getting products to global markets.

UPS knows a thing or two about the benefits of international trade — after all, about 2% of global GDP moves through our network each day.

Trade agreements help spur international trade by lowering the barriers and costs of getting products to global markets.

Historically, UPS export volume has grown about 20% in countries where free trade agreements are enacted, showing that what’s good news for UPS is also good for our customers.

Now that businesses have the opportunity to enter new markets, it is time to ensure that our legislators make this deal a reality.

The U.S. Congress is likely to take up the issue in early 2016, and Parliaments across TPP countries will be evaluating and ratifying the agreement in the coming months.

Moving forward, we expect there will be ample discussion about TPP, and UPS is fully committed to contributing our voice and the voices of our customers to express our support for this historic agreement. goldbrown2

*These benefits are based on trade officials’ presentations during the negotiating process, but we await the publication of the final text to confirm the specifics.


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Shiumei Lin is Vice President for Public Affairs & Sustainability for UPS Asia Pacific Region.

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Amgad Shehata is Senior Vice President of UPS International Public Affairs and Strategy.

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Reprinted with permission of Longitudes, the UPS blog devoted to the trends shaping the global economy.