Trick or treat? That is the question as American companies look ahead to a potential vote on the TPP agreement during a “Lame Duck” session of Congress after next week’s elections. The stakes are high, as it appears unlikely that TPP will be a priority for the next Administration, regardless of who becomes the 45th president. So passing TPP before the end of the year is crucial.
Don’t be tricked: congressional failure to pass TPP will cost American employers billions of dollars annually. Our research shows that TPP could have cut up to $17 billion in import taxes paid by American companies through 2020 had it gone into effect earlier this year. This page shows how TPP could benefit employers in each state.
The direct hit to companies’ bottom lines comes on top of all the lost opportunities for expanding sales in newly opened markets like Japan and Vietnam. Because many tariff cuts are phased in, the longer it takes to pass TPP, the longer it will be before American companies and workers can benefit from it. Even a one-year delay is a scary prospect!
For American employers competing in the global economy, failure to pass TPP this year would be anything but a treat.