The Trans-Pacific Partnership was signed on the 3rd of February 2016 by the 12 Ministries of Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, United States, and Vietnam. Among them, Brunei, Japan, Malaysia, New Zealand, and Vietnam have signed the TPP for the first time.
According to the European Organization of the Sawmill Industry (EOS), this agreement aims at creating opportunities for 15 specific industry sectors, such as consumer goods, energy or forest products. It also wants to provide access to some of the fastest-growing markets in the world for the American–made products.
The TPP will eliminate over 18.000 taxes that are placed on exports from America (including all tariffs on U.S. manufactured exports). Thus, 98 % of the U.S. industrial and consumer exports to the TPP countries will be eligible for immediate duty-free treatment. The US seeks to support the creation and retention of high-quality jobs at home by increasing American exports to a region that includes some of the world's most robust economies.
The countries under the TPP make an important market for the US wood products. Moreover, the 40% tariffs in Malaysia and the 31% in Vietnam will be eliminated, as well as the tariffs for the other TPP countries. Japan will leave out the import taxes on 100% of U.S. forest products exports, as well as Malaysia will eliminate import taxes on 85.0% of U.S. forest products exports immediately and 97.0% within 4 years.
Also, New Zealand will clear out import taxes on 99.0% of U.S. forest products exports, while Vietnam will eliminate import taxes on 95.4% of U.S. forest products exports immediately and 100% within 4 years.
There are some partners in the new TPP that make a significant market for US forest products exports, such as Japan ($2.0 billion), Vietnam ($342 million), Malaysia ($164 million), New Zealand ($65 million) and Brunei ($781,924).
Also, the US Forest Products sector is an important one, as it brought 1.2 million workers in 2014 and accounted for 5% of total US manufacturing production in 2013. In 2014, it exported forest products worth $36.4 billion and the total exports to the world grew by 28% between 2009 and 2014.
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