Mainebiz

W W W. M A I N E B I Z . B I Z 19 A P R I L 6 , 2 0 1 5 U.S. Sen. Angus King, Independent-Maine, says he supports New Balance's position on keeping Vietnam's footwear tariff in place. "I can't say what the fi nal outcome is," he told Mainebiz in a phone interview from Washington. "Like everyone else in the free world, I haven't seen the [TPP] agreement. I do know that New Balance is in ongoing conver- sations about this tariff , but I don't know if it is, or isn't, part of the agreement." King says the high-level secrecy surrounding the TPP is precisely the problem he has with the fast track bill, which would prevent Congress from making amendments. "To say it's like 'buying a pig in a poke' might be an insult to the pig," he says. U.S. Rep. Chellie Pingree, D-1 st District, opposes both fast track and major trade deals being negoti- ated in secret and worries the TPP could have more impact on American jobs than the North American Free Trade Agreement, which went into eff ect in 1994. U.S. Rep. Bruce Poliquin, R-2 nd District, says he is closely monitoring negotiations. He said he supports "free and fair trade" that would open markets for "Maine farmers, wood product manu- facturers and fi shermen," but also wants to insure that "our companies and workers are competing on a level playing fi eld." U.S. Sen. Susan Collins, R-Maine, takes a similar view, adding that she's "repeatedly urged the United States trade represen- tative not to undermine footwear manufacturing jobs in Maine by precipitously eliminating long- standing duties on certain footwear." Will it help Maine? As co-chair of the state's Citizen Trade Policy Commission until she left the Legislature last December due to term limits, former state Sen. Sharon Treat has been following closely the TPP and the equally major Transatlantic Trade and Investment Partnership trade agreement pending with the European Union. e commission was established in 2003 to provide ongoing assessments of the impact international trade policies might have on state and local laws and Maine businesses. While Treat agrees that preserving New Balance's manufacturing jobs in Maine and Massachusetts is critical, it's by no means the only issue in the TPP she believes Maine residents should be worried about. Maine policies designed to help local farmers — such as "buy local" procurement guidelines or the Maine Milk Pool — could be challenged if the trade agreement prohibits procurement provisions that favor local producers. And long-established Maine policies governing pharmaceutical and medi- cal device reimbursements, as well as "buy local" or "buy green" procurement guidelines, she says, "are all completely threatened by" the TPP and the equally sweeping Trans-Atlantic Trade and Investment Partnership with the European Union. "What's going to be the net benefi t if we do this?" she says. "And what are all those jobs they're talk- ing about being created? Ultimately, the question is: What's our vision for Maine and does this trade deal promote that?" J a m e s M c C a r t h y , M a i n e b i z s e n i o r w r i t e r , c a n b e r e a c h e d a t j m c c a r t h y @ m a i n e b i z . b i z The Trans-Pacific Partnership: At a glance The proposed Trans-Pacific Partnership trade agreement is among the United States and 11 Pacific Rim countries: Canada, Mexico, Peru, Chile, Japan, Singapore, Vietnam, Malaysia, Australia, New Zealand and Brunei Darussalam (a sovereign state on the island of Borneo). U.S. small- and medium-sized company exports in TPP: 97% of all goods exporting companies to TPP countries are from small- and medium-sized companies (2011). Those companies accounted for 29% of the total value of goods exports to TPP countries in 2011 Estimated economic impact: According to an analysis supported by the Peterson Institute, a TPP agreement could generate an estimated $305 billion in additional world exports per year, by 2025, including an additional $123.5 billion in U.S. exports S O U R C E : Offi ce of the U.S. Trade Representative Market size: 793 million consumers Jobs supported by exports: An estimated 4 million jobs were supported by U.S. goods and services exports to TPP countries in 2012 U.S. – TPP trade growth: Goods and services trade up 46% between 2009–12 Foreign direct investment from TPP countries in the U.S.: $620.3 billion (23% of foreign direct investment in the United States) $28.1 trillion in 2012 Combined Gross Domestic Product of TPP countries: $689.1 billion Value of goods exported to TPP countries: $1.8 trillion in goods and private services in 2012 39% of world GDP 45% of total U.S. goods exports (Up 46% from 2009) 37% of total U.S. trade U.S. trade with TPP countries: $0B $125B $250B $375B $500B $625B Plastics Mineral fuel (oil) Agricultural exports (up 36% from 2009) Vehicles Electrical machinery Machinery Mfg. exports (up 52% from 2009) $619 billion $109 billion $83 billion $82 billion $58 billion $33 billion $59.2 billion Top agricultural exports: Corn: $5.7 billion Pork and pork products: $4.3 billion Soybeans: $3.6 billion Beef, beef products: $3.3 billion Fresh fruit: $3.1 billion Key export categories (2012): $0 $60B $120B $180B $240B $300B $360B Japan Mexico Canada Canada: $354 billion Mexico: $243 billion Japan: $116 billion Top U.S. markets in TPP:

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