- Will the United States Benefit from the Trans-Pacific Partnership? (Federal Reserve Bank of New York)
… As the chart below shows, roughly 30 percent of U.S. exports to Japan are subject to some nonzero tariff rate, indicating substantial scope for liberalization, particularly in agricultural industries.
This highlights the fact that Japan joining the TPP has the potential to be a game-changer. As noted in a recent study, the estimated gains for the United States are twice as high with Japan in the TPP than not.
…, the expected value of the deal for U.S. trade arising from lowering import tariffs is correspondingly uncertain.
The TPP focuses primarily on promoting trade and investment. However, there are also many other issues on the table beyond trade, such as intellectual property protection and investor-state dispute settlement, which could turn out to be stumbling blocks.