Economic benefits of Trans-Pacific Partnership (TPP) to Washington: $8.7 billion in new exports, thousands of new jobs

A new study calculates the value of the Trans-Pacific Partnership (TPP) agreement to Washington state. The research was conducted by Community Attributes Incorporated for the Association of Washington Business and the Washington Council on International Trade. AWB reports on the analysis

The data illustrate in detail the enormous economic benefit from the deal: $8.7 billion in new Washington state exports. That would raise Washington’s total exports to $121.6 billion or nearly $1,300 per resident and add anywhere from 5,900 to 26,400 additional jobs.

A related press release state,

The study also identifies specific Washington industries that would benefit the most: agriculture, which would see tariffs as high as 208 percent eliminated; software, which would see improved cross-border data flows and IP protection; and aerospace, which will see an increased demand as TPP countries’ economies grow. Exports to Japan alone could have been $3.6 billion higher had the TPP been implemented last year.

“This study confirms that the best approach to growing our state’s economy is to strengthen our trade ties and thoughtfully break down foreign barriers for Washington exporters,” said Kris Johnson, President of AWB. “Because 40 percent of Washington jobs are connected to trade and our state already has such strong economic ties to the Asia-Pacific region, Washington would benefit greatly from the passage of TPP.”

“As this study indicates, every year we do not implement the TPP is another year we are losing out on opportunities to reach our full economic potential,” noted Eric Schinfeld, President of WCIT.

Here’s how the CAI report summarizes the agreement.

The Trans-Pacific Partnership (TPP) was signed in February 2016 by twelve Asia-Pacific nations spanning North America, South America, East Asia, Southeast Asia, Australia, and Oceania. If the trade pact is successfully ratified by signatory members, it will constitute the largest free trade zone in the world. The trade deal will introduce significant reductions in tariff and non-tariff barriers across a region representing more than one-third of global GDP.

CAI concludes:

Analytics presented in this report suggest that, if the TPP were already fully in force prior to 2015, Washington state exports would have been between $2.0 billion and $8.7 billion higher than 2015 totals. These gains translate into between 5,900 and 26,400 additional direct jobs, or 16,500 and 73,200 jobs when factoring in additional multiplier effects throughout the economy.

For more information on the TPP, go to this link to the Office of the U.S. Trade Representative

And listen to this Washington Research Council interview with Schinfeld.

A good deal.