Federal trade policy often has a significant impact locally, especially on exports. U.S. Free Trade Agreements (FTAs) are examples of national policies that help local businesses gain increased market access with our trading partners, allowing our businesses to compete on a level playing field. Consider that 56 percent of Wisconsin’s exports ($13.2 billion) in 2014 went to existing FTA partners.
Trade partnerships level the playing field
The Office of the United States Trade Representative, in coordination with other federal agencies, has embarked on negotiating two new regional FTAs – the Trans-Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership (T-TIP). If approved, TPP and T-TIP will have a significant impact on leveling the playing field for Wisconsin companies. For example, these two FTAs will:
- Eliminate or reduce tariffs and other duties on trade in agricultural, industrial and consumer products, making our Wisconsin products more price-competitive.
- Open up government procurement markets to U.S. goods and service providers so that our Wisconsin companies will be given equal treatment in foreign government procurement projects.
- Ensure transparent, efficient and predictable conduct of customs operations to help Wisconsin products get to market faster using more predictable foreign customs regimes.
- Protect intellectual property rights.
TPP negotiations were launched in 2009 to open new export opportunities (Brunei, Japan, Malaysia, New Zealand, Vietnam) and knit together existing U.S. trade agreements (Australia, Canada, Chile, Mexico, Peru and Singapore) in the Asia-Pacific region.
Reducing barriers
In 2013, T-TIP negotiations began with 28 European Union member states. The agreement would significantly reduce non-tariff barriers that decrease opportunities for Wisconsin exports, such as unwarranted sanitary restrictions not based on science, unjustified technical barriers to trade and other “behind-the-border” barriers.
Congress is currently considering bipartisan trade promotion legislation called Trade Promotion Authority (TPA), which essentially defines U.S. negotiating objectives and priorities for trade agreements. TPA would help conclude TPP, as it gives our trading partners the confidence to put their final offers on the table.
–Damian Felton is the director of the Milwaukee U.S. Export Assistance Center, District Export Council
