U.S. Imports from TPP Countries, ex- Canada and Mexico
Vietnam was already the third largest supplier in 2011, overtook Singapore in 2012, and could soon overtake Malaysia to be the leading supplier.
The Trans-Pacific Partnership (TPP) is a proposed regional free trade agreement (FTA) currently under negotiation between Australia, Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States, and Vietnam. The negotiating partners have expressed an interest in allowing this proposed “living agreement” to cover new trade topics and to include new members that are willing to adopt the proposed agreement’s high standards. Canada and Mexico are the most recent countries to join the negotiations and Japan has participated in consultations with the partner countries about the possibility of joining.
The TPP negotiations are of significant interest to Congress. Congressional involvement includes consultations with U.S. negotiators on and oversight of the details of the negotiations, and eventual consideration of legislation to implement the final trade agreement. In assessing the TPP negotiations, Members may be interested in understanding the potential economic impact and significance of TPP and the economic characteristics of the other TPP countries as they evaluate the potential impact of the proposed TPP on the U.S. economy and the commercial opportunities for expansion into TPP markets.
This report provides a comparative economic analysis of the TPP countries and their economic relations with the United States. It suggests that the TPP negotiating partners encompass great diversity in population, economic development, and trade and investment patterns with the United States. This economic diversity and inclusion of fast-growing emerging markets presents both opportunities and challenges for the United States in achieving a comprehensive and high standard regional FTA among TPP countries.
The proposed TPP and its potential expansion are important due to the economic significance of the Asia-Pacific region for both the United States and the world. The region is home to 40% of the world’s population, produces over 50% of global GDP, and includes some of the fastest growing economies in the world. With the addition of Canada and Mexico, TPP negotiating partners made up 31% of U.S. goods and services trade in 2011, and the Asia-Pacific economies as a whole made up over 56%. The TPP would be the largest U.S. FTA to date by trade value.
The United States is the largest TPP market in terms of both GDP and population. In 2011, non- U.S. TPP partners collectively had a GDP of $5.7 trillion, 37% of the U.S. level, and a population of 346 million, slightly larger than the U.S. population. Japan’s entry would increase the economic significance of the agreement on both of these metrics.
Unlike most previous U.S. FTA negotiations, the TPP involves countries with which the United States already has an FTA. The U.S. has FTAs in place with Australia, Canada, Chile, Mexico, Peru, and Singapore, which together account for nearly 85% of U.S. goods trade with TPP countries. Malaysia and Vietnam are the largest U.S. trade partners among TPP members without an existing U.S. FTA.
Other TPP partners also have extensive existing FTA networks. The Association of Southeast Asian Nations (ASEAN), of which Brunei, Malaysia, Singapore, and Vietnam are members, and its collective FTAs with other countries, accounts for the bulk of this interconnectedness. Moreover, ASEAN agreements with larger regional economies (e.g., China, Japan, and Korea) present a second possible avenue for Asia-Pacific economic integration; albeit one that currently excludes the United States.
Click this link to view and download the full report: Trans-Pacific Partnership (TPP) Countries: Comparative Trade and Economic Analysis, U.S. Congressional Research Service, Jan 29, 2013 (pdf , 37 pages)
The below charts show U.S. imports and exports from TPP countries, excluding Canada and Mexico. Note that Vietnam was already the third largest supplier in 2011, overtook Singapore in 2012, and could soon overtake Malaysia to be the leading supplier. As an export market, Vietnam ranks quite low.
U.S. Imports from TPP Countries, excluding Canada and Mexico
U.S. Exports to TPP Countries, excluding Canada and Mexico
Read more …
The Trans-Pacific Partnership and Asia-Pacific Integration: A Quantitative Assessment, Peter Petri, et. al., Dec 2012
slide presentation #1 | slide presentation #2 (benefits to Vietnam, U.S., China) | video
Panel Discussion and Q&A: Fred Bergsten, Jeffrey Schott, Peter Petri, Dec 19, 2012 video
Coming soon …
Mar 4-13, 2013. The 16th round of the Trans-Pacific Partnership (TPP) negotiations will take place at the Grand Copthorne Waterfront Hotel in Singapore from March 4-13, 2013. Registration is now open for TPP stakeholders interested in participating in stakeholder events.
The TPP Stakeholder Programme will take place on Mar 6. The organizers will accommodate stakeholders that wish to make presentations. With this, stakeholders now have an expanded range of options for engaging negotiators and other stakeholders. Those who wish to, can make presentations and/or request tables to display TPP-relevant collaterals, both on a first-come-first-served basis. Stakeholders who do not wish to make presentations, are still welcome to register and enjoy the same opportunity to engage negotiators and other stakeholders.
Posted: Feb 24, 2013