International Business Digest
Center for International Business Education
I S S U ES | 2&3
VOLUME | 12
MARCH | 2016
Trans‐Pacific Partnership Agreement
Trans‐Pacific
Partnership
Agreement
Page 1
Editor’s Note
Page 2
Foreign Investment
The Trans‐Pacific Partnership (TPP) is a landmark trade agreement among 12 countries
in the Pacific Rim. The TPP evolved from the Trans‐Pacific Strategic Economic
Partnership (TPSEP) agreement, which was ini ated by Brunei, Chile, New Zealand, and
Singapore in 2005. Subsequently eight more countries (Australia, Canada, Japan,
Malaysia, Mexico, Peru, United States, and Vietnam) joined the nego a ons for a
broader agreement. Reached on October 5, 2015, a er seven long years of arduous
nego a ons, the TPP is expected to promote economic growth; support the crea on
and reten on of jobs; enhance innova on, produc vity and compe veness; raise
living standards; reduce poverty; and promote transparency, good governance, and
enhanced labor and environmental protec ons.
in the U.S.
Page 2
Latest Trade
Statistics for U.S.
and Texas
Page 5
Global Trade and
Business: Current
News & Events
Page 7
Contact Information
Page 8
The TPP encompasses five defining features:
 Comprehensive market access – Tariff and non‐tariff barriers are eliminated or
substan ally reduced across almost the full spectrum of trade, including goods and
services trade and investment.
 Regional approach to commitments – Development of produc on and supply
chains is facilitated enhancing efficiency and suppor ng the goal of crea ng/
preserving jobs, raising living standards, enhancing conserva on efforts, facilita ng
cross‐border integra on, and opening domes c markets.
(Con nued on page 3.)
Editor’s Note
Gree ngs. It gives us great pleasure to bring to you the current issue of the Prairie
View Interna onal Business Digest, an electronic quarterly newsle er produced by
the Center for Interna onal Business Educa on.
This issue features four sec ons. The first sec on (Trans‐Pacific Partnership
Agreement) presents a summary of the recently concluded trade agreement among
12 countries in the Pacific Rim, including the US. The second sec on (Foreign
Investment in U.S.) briefly presents the 2014 figures of foreign investment in the US.
The third sec on (Latest Trade Sta s cs for U.S. and Texas) presents up‐to‐date
trade sta s cs for the U.S. and Texas for the last five years. The last sec on
highlights current global business/trade news and events. Please note that all URL
links are ac ve and you can go directly to a sec on from the Table of Contents on
the first page.
Dr. Rahim Quazi
Editor
We hope you con nue to find this e‐newsle er a valuable channel for important
informa on rela ng to interna onal business. We believe our efforts will inspire
greater number of local firms to seek out new global business opportuni es. Should
you have any ques ons or sugges ons, please feel free to contact us.
Thank you for your support,
Rahim Quazi, Ph.D.
Editor, Prairie View Interna onal Business Digest
Center for Interna onal Business Educa on
Prairie View A&M University
E‐mail | rmquazi@pvamu.edu
Phone | (936) 261‐9225
Fax| (936) 261‐9226
Foreign Investment in the U.S.
Foreign investors invested nearly $241.3 billion in acquiring, establishing, and
expanding U.S. businesses in 2014. Of this total, acquisi ons accounted for
the majority of new investment expenditure ($224.7 billion), and greenfield
investments in establishing and/or expanding businesses accounted for the
rest ($16.5 billion). Nearly 60% of these new foreign investment expenditures
went to manufacturing industries. Foreign investment makes a significant
contribu on to the U.S. economy. In 2013, majority foreign‐owned U.S.
affiliates accounted for nearly 23% of all U.S. goods exports and employed 6.1
million American workers with an average annual wage of nearly $80,000. The
Bureau of Economic Analysis provides comprehensive data on U.S.
interna onal transac ons, including foreign investment.
Source: Tradeology, Interna onal Trade Administra on Blog (December 2015)
Prairie View InternaƟonal Business Digest
Page 2
Volume 12| Issues 2 & 3
Trans‐Pacific Partnership Agreement
(Con nued from page 1.)
 Addressing new trade challenges – Innova on, produc vity, and compe
veness is promoted by addressing the
development of the digital economy, and the role of state‐owned enterprises in the global economy.
 Inclusive trade – Commitments are included to help economies at all levels of development and businesses of all sizes
take advantage of the trade opportuni es.
 Pla orm for regional integra on – Intended as a pla orm for regional economic integra on and designed to include
addi onal economies across the Asia‐Pacific region.
The TPP agreement includes 30 chapters covering trade and trade‐related issues, beginning with trade in goods and
con nuing through customs and trade facilita on; sanitary and phytosanitary measures; technical barriers to trade; trade
remedies; investment; services; electronic commerce; government procurement; intellectual property; labor; environment;
development, compe veness, and inclusiveness; dispute se lement, excep ons, and ins tu onal provisions. The next
several sec ons focus on a few of these important chapters.
In the chapter on e‐commerce, the TPP members commit to ensuring free
flow of global informa on that drive the Internet and the digital economy,
subject to legi mate public policy objec ves. The agreement prohibits the
imposi on of customs du es on electronic transmissions, and prevents TPP
members from favoring na onal producers or suppliers through
discriminatory measures. The TPP members also agree to adopt and maintain
consumer protec on laws related to fraudulent and decep ve online
commercial ac vi es and to ensure that consumer protec ons, including
privacy, can be enforced in TPP markets. To facilitate e‐commerce, the
agreement encourages the members to provide for electronic authen ca on
and signatures for commercial transac ons, and promote paperless trading
between businesses and the government, such as electronic customs forms.
The Intellectual Property (IP) chapter covers patents, trademarks, copyrights, industrial designs, geographical indica ons,
trade secrets, other forms of intellectual property, and enforcement of intellectual property rights. The TPP agreement
intends to make it easier for businesses, par cularly small businesses, to search, register, and protect IP rights in new
markets. The agreement provides protec ons of brand names and establishes standards for patents, based on the WTO’s
TRIPS Agreement and interna onal best prac ces. The agreement also contains provisions that facilitate the development
of innova ve, life‐saving medicines and the availability of generic medicines. On copyright, the agreement establishes
commitments for protec on of works, performances, and phonograms such as songs, movies, books, and so ware. Finally,
the agreement provides the legal means to establish criminal procedures and penal es for trade secret the , including
cyber‐the , commercial‐scale trademark counterfei ng and copyright or related rights piracy.
As members of the Interna onal Labor Organiza on (ILO), the TPP member countries recognize the importance of
promo ng interna onally recognized labor rights. The TPP agreement commits the members to honor the fundamental
labor rights as recognized in the ILO 1998 Declara on, namely freedom of associa on and the right to collec ve bargaining,
elimina on of forced labor, aboli on of child labor, and elimina on of discriminatory prac ces in employment. The
members also agree to enforce laws governing minimum wages, hours of work, and occupa onal safety and health. In
addi on to commi ng to eliminate forced labor and child labor in their own countries, the TPP members also commit to
discouraging importa on of goods or goods containing inputs produced by forced labor or child labor from any country.
(Con nued on page 4.)
Prairie View InternaƟonal Business Digest
Page 3
Volume 12| Issues 2 & 3
Trans‐Pacific Partnership Agreement
(Con nued from page 3.)
The TPP member countries are home to a significant por on of the world’s people,
wildlife, plants and marine species, and as such the TPP agreement provides a strong
commitment to protec ng and conserving the environment. Per the agreement, the
members commit to: i. effec vely enforce their environmental laws, ii. fulfil their
obliga ons under the Conven on on Interna onal Trade in Endangered Species of
Wild Fauna and Flora (CITES), iii. promote sustainable forest management, iv.
promote sustainable fisheries management, and v. promote conserva on of
important marine species. The TPP members also reaffirm their commitment to
implement the Mul lateral Environmental Agreements (MEAs) they have joined.
The TPP presents enormous opportuni es for U.S. exporters. By reducing or elimina ng tariffs and non‐tariff
barriers, the agreement will give U.S. exporters improved access to nearly 500 million consumers in 11 Pacific
Rim countries that collec vely represent 40% of global GDP. The Asia‐Pacific region has vast market poten al as
the majority of middle class consumers over the next 15 years (3.2 billion people according to the OECD) will
reside in this region. This region is also es mated to generate nearly half of global economic growth over the
next 20 years. The TPP agreement represents an important step toward open trade and regional integra on
across this important region.
More TPP Resources:









U.S. Consumer Goods and TPP: Suppor ng Jobs and Economic Opportuni es for Americans
U.S. Machinery Exports: Discovering the Benefits of TPP
U.S. Transporta on Equipment – Emerging Opportuni es with TPP Countries
New Opportuni es with TPP – Increasing U.S. Exports to Brunei
TPP Promotes Building Products Exports
Automo ve Products: Expanding a Key Industry to TPP Countries
The Future of Renewable Energy to TPP Countries
Health IT – Expor ng Cri cal Services to TPP Countries and Beyond
Personal Care and Cosme cs: TPP Opens Expanding Markets to Industry
Sources:
Summary of the Trans‐Pacific Partnership Agreement, Office of the United States Trade Representa ve
The Trans‐Pacific Partnership: A Win for American Businesses and Workers, Interna onal Trade Administra on Blog
Tradeology, Interna onal Trade Administra on Blog
Prairie View InternaƟonal Business Digest
Page 4
Volume 12| Issues 2 & 3
Latest Trade Sta s cs for U.S. and Texas
The tables below contain selected trade sta s cs for the U.S. and Texas for the last five years (2011‐2015). These data were
collected from the websites of the U.S. Census Bureau (h p://www.census.gov/foreign‐trade) and Office of Trade and
Industry Informa on (OTII), Manufacturing and Services, Interna onal Trade Administra on, U.S. Department of Commerce
(h p://tse.export.gov).
Table 1: Total U.S. Exports, Imports and Trade Balance (BOP) (Billions of $)
Trade Category
Exports ‐ Total
Exports ‐ Goods
Exports ‐ Services
2011
2,127.02
1,499.24
627.78
2012
2,218.99
1,562.58
656.41
2013
2,279.94
1,592.04
687.89
2014
2,343.21
1,632.64
710.57
2015
2,223.62
1,513.45
710.17
Imports ‐ Total
Imports ‐ Goods
Imports ‐ Services
2,675.65
2,239.89
435.76
2,755.76
2,303.75
452.01
2,758.33
2,294.63
463.70
2,851.53
2,374.10
477.43
2,763.37
2,272.76
490.61
Trade Balance ‐ Total
Trade Balance ‐ Goods
Trade Balance ‐ Services
‐548.63
‐740.65
192.02
‐536.77
‐741.17
204.40
‐478.39
‐702.59
224.19
‐508.32
‐741.46
233.14
‐539.76
‐759.31
219.55
Table 2: Top 5 Merchandise Export Markets for the U.S. (Billions of $)
Partner
1. Canada
2. Mexico
3. China
4. Japan
5. U.K.
2011
281.29
198.29
104.12
65.80
56.03
2012
292.65
215.91
110.52
69.96
54.86
2013
301.61
226.08
121.74
65.21
47.35
2014
312.13
240.33
124.02
66.96
53.87
2015
280.33
236.38
116.19
62.47
56.35
Table 3: Top 5 Merchandise Import Partners for the U.S. (Billions of $)
Partner
1. China
2. Canada
3. Mexico
4. Japan
5. Germany
2011
399.37
315.32
262.87
128.93
98.68
2012
425.63
324.26
277.59
146.44
109.23
2013
440.45
332.55
280.53
138.57
114.34
2014
466.66
346.06
294.16
133.94
123.18
2015
481.88
295.19
294.74
131.12
124.14
(Con nued on page 6.)
Prairie View InternaƟonal Business Digest
Page 5
Volume 12| Issues 2 & 3
Latest Trade Sta s cs for U.S. and Texas
(Con nued from page 5.)
Table 4: Total U.S. Merchandise Trade Balance (Billions of $)
Partner
World Total
1. Hong Kong
2. Netherlands
3. U.A.E.
4. Australia
5. Singapore
1. China
2. Germany
3. Japan
4. Mexico
5. Canada
2011
2012
2013
2014
‐725.45
‐730.60
‐688.73
‐721.74
U.S. Merchandise Trade Surplus: Top 5 Partners
31.99
32.01
36.66
35.08
18.77
18.36
23.34
22.86
13.48
20.31
22.15
19.31
17.38
21.59
16.86
16.00
12.17
10.29
12.83
14.07
U.S. Merchandise Trade Deficit: Top 5 Partners
‐295.25
‐315.11
‐318.71
‐342.63
‐49.39
‐60.43
‐66.98
‐73.74
‐63.13
‐76.47
‐73.37
‐66.97
‐64.58
‐61.69
‐54.45
‐53.83
‐34.03
‐31.61
‐30.94
‐33.94
2015
‐736.2
30.5
24.0
20.5
14.2
10.4
‐365.7
‐74.2
‐68.6
‐58.4
‐14.9
Table 5: Top 5 U.S. Merchandise Expor ng States (Billions of $)
2011
2012
2013
2014
2015
1,482.51
1,545.70
1,579.59
1,623.44
1,513.45
1. Texas
251.10
264.67
279.49
289.02
251.09
2. California
159.42
161.75
168.04
174.13
165.37
3. Washington
64.80
75.66
81.64
90.65
86.35
4. New York
85.00
81.34
86.52
86.01
80.06
5. Illinois
64.90
68.16
66.09
68.18
63.40
U.S. Total
Table 6: Top 5 Merchandise Export Markets for Texas (Billions of $)
Partner
1. Mexico
2. Canada
3. China
4. Brazil
5. Netherlands
Prairie View InternaƟonal Business Digest
2011
87.19
22.12
10.95
10.06
8.82
2012
94.44
23.86
10.30
10.04
9.60
Page 6
2013
100.92
26.08
10.85
10.86
9.55
2014
102.63
31.12
10.99
11.76
8.91
2015
94.52
25.39
11.61
7.22
6.84
Volume 12| Issues 2 & 3
Global Trade & Business:
Current News and Events
2015: A Year of Achievement for Trade and Investment
New Report: Global FDI Flows Show Con nued Confidence in U.S. Economy
India’s Smart Ci es Presents U.S. with a Unique Opportunity
U.S. Exporter Finds “Lo y” Niche in Light Li Technology
U.S.‐Mexico Rela onship: One of Great Importance
U.S.‐China Oil and Gas Industry Forum: China’s Shale Gas Explora on
The Great Mall of China
New Opportuni es in Colombia
Exports in Higher Educa on – Finding Qualified Students in Central Europe
How to Find Sector Opportuni es in South Korea
Introducing U.S. Businesses to Unprecedented Opportuni es in Japan’s Electricity Market
Vets Go Global Ini a ve Assists and Empowers Veteran‐Owned Businesses
Recrea onal Vehicle Industry Associa on Create Opportuni es for U.S. Companies to Expand Overseas
New ITA Report Highlights Jobs Supported by Product & Industry Exports
Strengthening U.S. Manufacturing and Increasing Investment in the U.S.
Manufacturing Relies on the Strengths of American Communi es
Five Things Entrepreneurs Should Know About Export Controls
Tex les & Apparel – A Global Industry
Aerospace: a sector that can elevate our collec ve interna onal interests
A Century‐Old Company’s Global Manufacturing Success: Story of a Harbor Tug
Two Events to Make 2016 A Banner Year for Investment
SelectUSA’s First‐Ever Canada Conference – Greater Opportunity for the U.S.‐Canada Commercial
Rela onship
The Industrial Global Village Meets in Hanover
Source: Tradeology, Interna onal Trade Administra on Blog
Prairie View InternaƟonal Business Digest
Page 7
Volume 12| Issues 2 & 3
Next Issue Available: June 2016
If you would like to receive an electronic version of this newsle er, contact
Dr. Rahim Quazi at 936‐261‐9225 or rmquazi@pvamu.edu
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PVAMU College of Business
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The Prairie View A&M University College of Business strives to be among the best regional business schools in the
na on by empowering students from diverse backgrounds to reach their full poten al.
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backgrounds with educa on that helps them become business professionals and leaders who are ethical,
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quality teaching, research, service, and engagement with the business community.