As Congress evaluates the details of what could be the world’s biggest trade deal yet in the coming months, one of the most crucial components that often gets overlooked is the agreement’s focus on small and medium-sized businesses. The Trans-Pacific Partnership represents an unparalleled opportunity for the global economy. The deal is the largest and most substantial free trade agreement in history, connecting 12 global economies, 40% of GDP and 800 million consumers across the Americas and the Asia-Pacific region.
For the first time in any trade agreement, TPP includes a chapter focused on addressing trade barriers that disproportionately challenge small business, including complex trade paperwork, opaque customs regulations, and the slow delivery of small shipments. Collectively, these improvements through TPP should help small- and medium-sized companies expand their international business or make the decision to go global in the first place.
This is an area there has been little focus on.
Most of the focus goes on tariff removals as economists can easily calculate the value of those to the economy. But there is far more to trade agreements today than just removing tariffs and stuff such as making it easier for small businesses to trade internationally can be very important – especially to NZ.