Three reasons US chemical manufacturers would welcome Japan to TPP negotiations

“This is our last chance. If we don’t seize it, Japan will be left out,” declared Japanese Prime Minister Shinzo Abe in a televised address last Friday, calling for his country’s support in joining the United States and 10 other parties in the Trans-Pacific Partnership (TPP) negotiations.

The ACC is among several business groups that would welcome Japan to the TPP talks. Here are three reasons why:

1. Japan’s inclusion would generate significant new commercial benefits from the TPP. Japan is one of the top-five markets for US chemical exports, and Japan’s entry into the TPP would provide an opportunity to eliminate remaining chemical tariffs and address nontariff barriers to trade.

2. An ambitious partnership among 12 TPP parties, including Japan—the world’s third-largest economy—would create a trade block with GDP more than 40% larger than that of the 27-nation European Union—and provide important new market access opportunities for US chemical manufacturers.

3. The inclusion of Japan in the TPP would expand the Japanese economy by at least $33 billion, or 0.7%, according to government estimates, while helping to create a regional free trade zone which would give a major boost to growth and job creation.

A robust, agile US trade agenda is essential to US economic expansion and job growth. That’s why ACC supports a high-standard, comprehensive, and ambitious TPP that would eliminate remaining chemical tariffs on entry into force, reduce nontariff barriers, and address commercially strategic trade issues such as trade facilitation and regulatory coherence.

The global market for chemistry is intensely competitive, and the advancement of comprehensive and commercially meaningful free trade agreements such as the TPP would provide a significant boost for US chemical manufacturers, which are already amongst the most competitive in the world thanks to increased supplies of low cost shale gas.

American chemistry is also one of the nation’s largest exporting sectors, with nearly $189 billion in exports in 2012, accounting for 12% of all US exports.