Trans-Pacific Partnership (TPP)

For someone looking to build a business, there is no shortage of books, seminars and online forums available to provide insight into best practices and tips for success.  As helpful as some of these resources may be, there is one key to growing a business that is indisputable:  you must have customers.  With no one to buy your product, utilize your service or attend your event, your business will not succeed.  Another key tenet follows:  the more customers you have, the more successful your business will be. 

This principle of supply and demand is at the heart of our economy.  It is also an underlying factor in the importance to our country of negotiating trade agreements with our economic partners.  The Trans-Pacific Partnership, a free trade agreement negotiated with 11 other Asia-Pacific nations, will open more markets to U.S. businesses – providing access to millions of new customers.

San Diego already has a thriving export market, sending nearly $19 billion in goods abroad in 2014.  And we’re already doing business with TPP-member countries, directing 44 percent of all merchandise exported from San Diego in 2014 to those nations.  Yet, there is room to grow.  Based on an independent report analyzing San Diego’s trade economy, the region ranks only 61st in export intensity, or the percent of goods exported abroad.  The implementation of TPP will level the playing field by eliminating tariffs and other trade barriers that will make U.S. products more desirable to customers in these markets.  

The trade deal will increase access to the fast-growing Asian markets, reduce or eliminate tariffs and pave the way for greater uniformity when it comes to regulations and documentation requirements.  This will help streamline the exporting process, making it easier for San Diego companies to send their goods overseas. 

The TPP represents the most significant trade negotiation in a generation, and we can’t afford to ignore its potential in growing San Diego’s export economy.  Congress is expected to consider the TPP later this year, and we urge our elected leaders to support San Diego businesses by voting in favor of ratification of the agreement.

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