Trans-Pacific Partnership Good for US Small Business
Asia-Pacific Trade Agreement Could Boost Exports, Income
December 04, 2014
The Trans-Pacific Partnership (TPP), a trade agreement which would expand American trade with nations in the Asia-Pacific region, could increase exports by up to 37.3 percent and generate $295 billion annually in income gains by 2025, according to a new report by National Center for Policy Analysis Research Associate Alyson Cuervo.
“Benefits from joining the TPP would amount to $5 billion in 2015, growing to $14 billion annually by 2025,” says Cuervo. TPP nations would see significant net income and exports gains by 2025.
Each participating country would see an export increase of between 2.5 percent to 37.3 percent by 2025.
Income gains would total $295 billion annually by 2025.
Japan would see the greatest gains from the TPP, with $119 billion in income gains and $176 billion in exports by 2025.
Originally a trade agreement between Brunei, Chile, New Zealand and Singapore, the TPP could soon expand to twelve more countries, including the United States. For the United States, the TPP would:
Expand US markets abroad, especially for small businesses,
Improve transparency and consistency of the regulatory process,
Include groundbreaking new rules on state-owned enterprises,
Improve the intellectual property rights framework, and
Promote a thriving digital economy.
“As with the North American Free Trade Agreement, the Trans-Pacific Partnership will positively impact small businesses, allowing them to compete more effectively in the world market,” says Cuervo. “Given that a very large number of U.S. exporters are small businesses, a competitive small business sector means a more competitive United States.”