After ten years of negotiation, the Trans-Pacific Partnership (TPP) Agreement has reached Capitol Hill. TPP would eliminate or reduce tariff and non-tariff barriers for goods and services and covers the full spectrum of trade and investment. TPP would eliminate more than 18,000 taxes and trade barriers applied to US-made products, as well as offer trade benefits to 11 member countries including Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.
The comprehensive agreement covers 30 chapters of trade and trade-related issues, from trade of goods through customs and trade facilitation, sanitary and phytosanitary measures to intellectual property. TPP parties agree to eliminate and reduce tariff and non-tariff barriers on industrial goods, as well as eliminate or reduce tariffs or other restrictive policies on agricultural goods. While tariffs on industrial goods would be eliminated immediately, tariffs on other products would be removed over a longer time frame. Additionally, the rules of origin, defining where a particular commodity originates, have been simplified to universally apply to all participating countries.
As TPP makes its way through Congress, Deringer will continue to provide updates. An overview of the agreement can be found on the Office of the United States Trade Representative’s website. Additionally, the US Department of Commerce has provided an online database with filters to help stakeholders find additional, specific information regarding the agreement. Please contact Deringer’s Compliance Department with specific questions about TPP.