U.S. Signs Off On Trans-Pacific Partnership

U.S. Signs Off On Trans-Pacific Partnership

The Trans-Pacific Partnership has been officially signed by its 12 member nations in a ceremony in Auckland, New Zealand, but the historic trade deal has a long way to go before going into full effect.

President Obama was not on hand for the signing, but instead sent U.S. trade representative Michael Froman on his behalf. Froman arrived in New Zealand on Tuesday for meetings.

Back in October, negotiators agreed to the terms of the TPP in Atlanta, and just a month later the text of the agreement was released. About 40 percent of the global economy is pulled together with the deal, which is largely considered to help rival China’s growing influence in the Asia-Pacific region. China isn’t a part of the deal.

For footwear and apparel, the deal begins to chip away at high tariffs rates specifically opening up markets for more production in Vietnam and expanding the market for U.S. made goods in Japan. One estimate by the Footwear Retailers and Distributors of America puts tariff savings as high as $450 million in the first year of the deal.

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