Trans-Pacific Partnership Good for US Small Business

Asia-Pacific Trade Agreement Could Boost Exports, Income

Source: NCPA

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.”

 The Trans-Pacific Partnership: Opportunities for International Trade and Internal Growth: