TPP – An Opportunity for Texas

The case study at the following link (http://tradebenefitsamerica.org/sites/default/files/studies/BRT_TPP_TX.pdf) talks about the impact of TPP and the potential benefits for Texas with the Trans-Pacific Partnership.

Texas has important trade and investment ties with TPP countries. In 2011, trade-exports and imports of goods and services with TPP countries supported an estimated 1,160,100 jobs in the state. The TPP will help build on these trade and investment relationships and support the Texas jobs that depend on them.

Texas’s goods exports in 2013 totaled $279.7 billion.  Texas exported $141 billion annually in goods to all TPP markets. Texas’s goods exports to all TPP markets increased by 15 percent from 2011 to 2013. During this period, 53 percent of Texas’s total goods exports went to the TPP region.  The top three product categories exported to TPP-member economies in 2013 were computer and electronic products, petroleum and coal products, and chemical manufactures.

A total of 40,737 companies exported goods from Texas locations in 2012.  Of those, 37,921 (93.1 percent) were small- and medium-sized enterprises with fewer than 500 employees.

Small- and medium-sized firms generated nearly one-third or 30.6 percent of Texas’s total exports of merchandise in 2012.  Small- and medium-sized firms benefit from the tariff-elimination provisions of free trade agreements, as well as many of the other commitments in the agreement.  Trade facilitation, for example, is vital to small- and medium-sized firms, as is enforcement of their intellectual property rights, streamlining of regulatory issues, and other commitments.

Jobs supported by Texas’s goods exports were about 786,000 in 2011 according to the U.S. Department of Commerce data.  In 2011, over one-quarter (26.1 percent) of all manufacturing workers in Texas depended on exports for their jobs.

The TPP will also help Texas companies buy the inputs they need to produce competitive products. The TPP will help strengthen investment ties between Texas and all 11 TPP countries. By removing barriers and strengthening partnerships, the TPP will encourage companies based in TPP countries to increase their business investment in Texas, supporting economic growth and jobs throughout the state.

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