The Importance of Trade Agreements to U.S. Businesses, Farmers & Workers
More than 95 percent of the world’s population, and 80 percent its purchasing power, are outside the United States. This means future U.S. economic growth and jobs increasingly depend on expanding U.S. trade and investment opportunities. Free trade agreements (FTAs) do exactly that. In fact, in 2013 alone, America's FTA partners purchased 12 times more goods per capita from the United States than non-FTA partners.
The United States is currently negotiating a new and ambitious FTA, the Trans-Pacific Partnership (TPP), with 11 other countries: Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. Combined, these countries represent nearly 40 percent of global GDP, and trade with the TPP countries currently supports more than 15 million U.S. jobs.
The TPP represents a new standard for global trade and economic engagement in the 21st Century. It will lower trade and investment barriers for U.S. businesses and farmers to sell more goods and services to the more than 480 million consumers in TPP partner countries.
The lower tariffs and trade barriers the deal represents could mean growth and job creation here at home. Forty-four percent of U.S. goods exports currently go to TPP countries, and with fewer trade barriers, we could see that number increase.