Make 2015 the year of trade

   A new year means new opportunities, especially in the trade world. With the recently resurrected World Trade Organization Trade Facilitation Agreement seemingly back on track, and Trans-Pacific Partnership (TPP) close to completion, 2015 should be the year of trade. The 12 TPP countries are eager to finish this agreement. In 2011, U.S. trade with other TPP countries supported an estimated 14.9 million American jobs and 45 percent of U.S. goods exports went to those countries. 
   TPP will enhance trade, support jobs and create economic growth and development. It will eliminate tariffs and other barriers to trade. Commitments from the 12 TPP countries will create sustainable growth and increase quality of life, so it is vital that these countries complete the agreement as soon as possible.  
   The Office of the U.S. Trade Representative, led by Ambassador Michael Froman, should be commended for continually leading the charge on TPP, as well as on Trade Promotion Authority (TPA). That being said, there must be stronger political will at the top to finalize these agreements. The business community will continue to support the Obama administration in pushing TPP over the finish line. The benefits of an agreement of this size cannot be ignored. The agreement will cut red tape by reducing costs, making it easier, quicker and cheaper for businesses to compete globally. U.S. business support for the agreement is a must, since TPP will generate revenue and create more jobs for hard-working Americans.
   What does an ambitious TPP look like for business? The agreement needs to ensure quicker release of goods through customs. Expedited customs procedures for express shipments, advance rulings, and transparent and predictable customs regulations are critical. There must be a higher-level commitment for standards that are transparent and cut down corruption at the border. 
   The agreement must enhance the competitiveness of each TPP country’s economy while promoting regional economic integration and creating jobs. This can only occur by including small and midsized enterprises (SMEs) in the development of strong regional supply chains. SMEs often have difficulty understanding and using trade agreements. By simplifying and clarifying the process, it further encourages them to trade globally, further integrating their supply chains.  
   Furthermore, an effective mechanism for assisting countries in implementing trade agreements, such as TPP and the WTO Trade Facilitation Agreement, must be created. Metrics and procedures should be developed that ensure effective and timely implementation. Many countries that have free trade agreements (FTAs) are still struggling to implement them. There are still many issues regarding release of goods at the border, duties and whether or not goods can come into the country under these FTAs. There must be accountability and a commitment to ensure that implementation occurs properly. This will only help countries strengthen their economic development. 
   In the United States, TPP cannot be completed without Trade Promotion Authority. TPA will give the president the authority to negotiate international agreements, but Congress must approve TPA. Despite differing opinions regarding TPA on Capitol Hill, both Republicans and Democrats must find a way to work together to approve the authority as soon as possible. 
   With the 114th Congress beginning, we have a new opportunity to pass TPA along with all of the other pieces of trade legislation, such as Customs Reauthorization, that were left in the queue last Congress. Passing these pieces of legislation sets the precedent to conclude TPP in 2015. The longer TPP sits incomplete, the higher the likelihood the agreement will fall apart. The other TPP countries are eager for the agreement to be completed, and TPA has to pass in order for that to occur. 
   It is time to insure that we have predictable trade. Expired and expiring agreements need to be acted on by Congress and nurtured by the administration. Let’s put commerce and growth on the priority-one agenda. 
   In supporting the current trade agenda, the International Chamber of Commerce along with the U.S. Council for International Business will hold a customs and trade facilitation symposium, titled “Finding Solutions to Cross-Border Challenges,” Feb. 22-24 in Miami. The symposium will bring together business, government, international organization and operational experts from around the world. It will focus on how to streamline trade and limit cross-border inefficiency and friction. TPP and TPA are important parts of that conversation. As a trade community, let’s start off 2015 the right way, by capitalizing on the opportunity that’s in front of us and getting TPP over the finish line. 
   For more information about the symposium, or to register for the event, access this website link: https://www.uscib.org/index.asp?documentID=4884. 
   Cook is vice president of government and trade relations with HanesBrands, Inc. He chairs the Customs and Trade Facilitation Committee of the U.S. Council for International Business. He can be reached by email at Jerry.Cook@hanes.com.

This column was published in the February 2015 issue of American Shipper.