TPP trade deal signing welcomed by UPS
04 / 02 / 2016
UPS has welcomed the eventual signing of the Trans-Pacific Partnership (TPP) free trade agreement but commentators have warned that there are years of negotiations ahead.
Earlier today 12 nations – Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the US and Vietnam – signed up to the TPP trade pact after 10 years of negotiations.
The nations account for around 40% of the world’s economy and the TPP will cut tariffs between the countries to help boost trade.
In total, 18,000 tariffs will be affected should the TPP come into force. The World Bank estimates TPP will raise GDP by an average of 1.1% for the 12 member countries by 2030, with exports projected to rise more than 10% on average across the region.
The moves were welcomed by UPS. “TPP will set the rules of global trade in the 21st century and presents economic growth opportunities for our business and our customers,” said UPS chief executive David Abney.
“TPP is a historic agreement that represents real market opportunities for American companies, workers, and consumers.
“TPP will help UPS customers across multiple sectors by bringing down tariffs, accelerating the release of goods through customs, and particularly support the participation of small businesses in regional and global supply chains.”
However, the TPP is far from implementation, commentators have warned. The next steps will see the text of the TPP signed and ratified.
Over the next two years at least six countries accounting for 85% of the combined GDP of 12 nations must approve the final text.
There is also great opposition to the TPP in many countries. In the US, for instance, opponents argue the deal will have a negative effect on US jobs and companies by making foreign goods less expensive.
When negotiations over the TPP ended in October last year, the US Airforwaders Association and Boeing welcomed the news.