On 3 February 2016 the 12 Ministers representing Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, United States, and Vietnam signed the Trans-Pacific Partnership Agreement (New TPP Countries: Brunei, Japan, Malaysia, New Zealand, and Vietnam). This agreement aims at creating opportunities for 15 specific industry sectors; such as consumer goods, energy and forest products.
The Trans-Pacific Partnership (TPP) aims at providing American–made products new access to some of the fastest-growing markets in the world. TPP will eliminate over 18,000 taxes various countries place on Made-in-America exports – including all tariffs on U.S. manufactured exports. Indeed, 98 % of the U.S. industrial and consumer exports to the TPP countries will be eligible for immediate duty-free treatment.
Through this agreement, the United States is seeking to support the creation and retention of high-quality jobs at home by increasing American exports to a region that includes some of the world's most robust economies.
The TPP countries represent a significant market for U.S. wood products. Under TPP, tariffs as high as 40% in Malaysia and 31% in Vietnam will be eliminated. U.S. wood products producers will enjoy market access into new TPP countries. Malaysia and Vietnam will eliminate nearly all tariffs on U.S. wood products immediately.
- Japan will eliminate import taxes on 100% of U.S. forest products exports immediately;
- Malaysia will eliminate import taxes on 85.0% of U.S. forest products exports immediately and 97.0% within 4 years;
- New Zealand will eliminate import taxes on 99.0% of U.S. forest products exports immediately;
- Vietnam will eliminate import taxes on 95.4% of U.S. forest products exports immediately and 100% within 4 years;
New TPP Partners are Significant Markets for U.S. Forest Products Exports:
- Japan: $2.0 Billion
- Vietnam: $342 Million
- Malaysia: $164 Million
- New Zealand: $65 Million
- Brunei: $781,924
Importance of the U.S. Forest Products Sector
- 1.2 Million U.S. Forest Products Workers in 2014.
- Accounted for 5% of Total U.S. Manufacturing Production in 2013.
- $36.4 Billion in U.S. Forest Products Exports to the World in 2014.
- U.S. Forest Products Exports to the World Grew by 28% between 2009-2014.
- 48% of Total U.S. Forest Products Exports to the World in 2014 go to TPP Regions.