In August, the Trans Pacific Partnership negotiators came to a standstill, as negotiators struggled to find an appropriate agreement that benefited all parties. With the goal of re-shoring manufacturing jobs, the National Association of Manufacturers pushed for terms that would bring manufacturing jobs back to the United States. In late summer, it appeared that would not be possible.
All of that has changed with an October announcement that an agreement has been reached. The United States, Japan and 10 Pacific Rim nations have come to an agreement which will be the largest trade pact seen in recent times. This comes after many experts speculated that there would be no agreement in 2015 after talks had stagnated in the summer.
This is an agreement that shippers and domestic manufacturers have desired for a long time, because it provides hope for US-based manufacturers to see growth and increased global connections and competitiveness. By reaching an agreement, shippers will now have a new Pacific economic market in which fewer trade barriers allow for better trade of textiles, food and technology products. Increased trade
Logistics managers are also excited about the potential for this agreement. The partnership brings common standards to the labor and environment of these different economies. This allows sustainable investment into the Pacific Rim economies for logistics managers who struggle with inconsistencies.
Now that the Trans-Pacific Partnership has reached an agreement, the next step in the process is for the U.S. government to accept the deal. President Obama will need to convince the U.S. Congress to vote in favor of the agreement before it will be set in stone.