Under the TPP, on beef products, Japan will eliminate duties on 74 percent of its tariff lines, while Vietnam will eliminate tariffs currently as high as 34 percent.
On machinery, which accounts for almost 6 percent of U.S. manufacturing output, Japan will immediately eliminate all tariffs, while Malaysia and New Zealand immediately eliminate about 94 percent of their tariffs.
About 15 percent of Vietnam's tariffs of 20 percent ad valorem or higher will be eliminated immediately (60 percent will be eliminated within 5 years), which will open that large market much further to U.S. (and other TPP) exporters.
Tariff reductions will occur in large and growing consumer markets, such as Japan and Vietnam, where barriers traditionally have impeded access of U.S. exporters.
Improvement in customs procedures under TPP should help smooth the process of customs clearance and reduce the costs of international trade, especially with respect to TPP members that do not currently employ modern customs procedures.
Express shippers (and the customers they serve) are likely to have more confidence in their ability to deliver goods on a âoejust in timeâ basis.
The development of highly functional and easy-to-use digital technology to expedite customs clearance within the TPP may provide a helpful template that could be adopted by other trading nations.
TPP also liberalizes cross border trade in services, financial services, telecommunications & e-commerce.