February 9, 2016 The Pike Law Firm, P.C.

 The Trans-Pacific Partnership (“TPP”) is a trade agreement among 12 Pacific Rim countries  The TPP agreement was finalized last October and was confirmed in a formal signing ceremony on February 4, 2016 in New Zealand

 Singapore  Brunei  New Zealand  Chile  United States  Australia  Peru  Vietnam  Malaysia  Mexico  Canada  Japan

 According to the Office of the United States Trade Representative, TPP focuses on five areas to create new opportunities in global trade: ◦ Comprehensive market access ◦ Regional approach to commitments ◦ Addressing new trade challenges ◦ Inclusive trade ◦ Platform for regional integration

 One of the main features of TPP is the elimination or reduction of tariffs and non-tariff barriers for member countries across nearly all trade

 TPP aims to facilitate the development of production and supply chains, and seamless trade, enhancing efficiency and supporting the goal of creating and supporting jobs, raising living standards, enhancing conservation efforts, and facilitating cross-border integration, as well as opening domestic markets

 TPP seeks to promote innovation, productivity, and competitiveness by addressing new issues, including the development of the digital economy, and the role of state- owned enterprises in the global economy

 TPP includes commitments to help small- and medium-sized businesses understand the agreement, take advantage of its opportunities, and bring problems to the attention of the TPP governments  It also includes specific commitments on development and trade capacity building

 Finally, TPP is intended as a platform for regional economic integration and is designed to include additional economies across the Asia-Pacific region

 TPP consists of 30 chapters covering many trade-related issues, including:  Trade in goods  Customs and trade facilitation  Sanitary and phytosanitary measures  Technical barriers to trade  Trade remedies  Investment  Services  Electronic commerce  Government procurement  Intellectual property  Labor  Environment  Dispute settlement

Trade-Related Highlights

 As many TPP parties have existing free trade agreements with one another, TPP specifically recognizes that it can coexist with existing international agreements, including the WTO Agreement, bilateral agreements, and regional agreements (such as NAFTA)

 In order to increase trade among TPP member countries, TPP eliminates and reduce tariffs and non-tariff barriers on industrial goods  TPP also eliminates or reduces tariffs and other restrictive policies on agricultural goods

 Most tariff elimination for industrial goods will be implemented immediately, but tariffs for some products will be eliminated over longer timeframes  For agricultural goods, the parties agree to promote policy reforms such as eliminating agriculture export subsidies

 TPP also eliminates tariffs on textiles and apparel  Most of these tariffs will be eliminated immediately, but some will be eliminated over longer timeframes

 TPP contains product-specific rules of origin  TPP provides for “accumulation,” so that in general, materials from one TPP party are treated the same as materials from any other TPP party

 TPP allows parties to apply for a transitional safeguard measure if import increases resulting from tariff reductions cause serious injury to a domestic industry

 TPP prohibits the imposition of customs duties on electronic transmissions and prevents parties from favoring national producers through discriminatory measures or outright blocking of data

 TPP will not come into effect until a requisite number of original signatories ratify the deal  In the U.S., the formal signing of TPP on February 4 triggered the process of drafting and considering a bill in Congress to implement the agreement, which will also serve as U.S. ratification of the deal

 The Obama Administration has expressed its desire to see Congress pass a TPP bill in 2016, but that outcome is uncertain given the highly partisan environment in Washington, which is further heightened in this Presidential election year

The Pike Law Firm, P.C. 246 Sycamore Street Suite 215 Decatur, GA (404) Damon V. Pike, President Trevor E. Brice, Associate