According to new research on Connecticut’s imports from the so-called “new TPP” countries not covered by existing free trade agreements (i.e., Brunei, Japan, Malaysia, New Zealand, and Vietnam), the TPP would cut import taxes paid by Connecticut employers dramatically. These benefits come in addition to opening new markets for exports and modernizing outdated rules.
How much could Connecticut employers save? In 2015, imports into Connecticut from new TPP countries faced an estimated $23.5 million in tariffs (i.e., taxes). TPP could eliminate 88 percent of these taxes by year five, saving as much as $102.2 million over that period, as shown in the graph below.
What types of products would be impacted? Imports into Connecticut are a mix of raw materials and components used by American manufacturers and finished goods sold directly to American families. Clearly, not all the tariffs go away: many imports are subject to phase-outs and tariffs would remain in place for up to 30 years on certain sensitive items. The box below highlights select imports into Connecticut whose import taxes would fall to zero upon implementation of TPP.
Looking for more information? Please use the links below to:
- Download the one-page fact sheet on potential TPP import benefits for Connecticut.
- View the map highlighting potential TPP import benefits for all other states.
- Learn how TPP would impact taxes charged on your imports.
- Visit the Trade Benefits America website for more general info on trade and investment between states and TPP countries.