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Trans Pacific Partnership Good For Houston Business

Written by Susan Steely | 21 May 2010

trans_pacific_partnershipFCA Corp, investment adviser to Houston based Commonwealth International Trust, parent to four international mutual funds, including the Commonwealth Australia/New Zealand Fund, played host to New Zealand officials touring the U.S. to promote the benefits of the Trans Pacific Partnership (TPP) trade agreement currently being negotiated with United States. New Zealand was one of the first four countries (with Singapore, Chile, and Brunei) that created the "P4" trade agreement in 2005. "We're excited that the P4 has now become the Trans Pacific Partnership, currently being negotiated by the original four countries and the United States, Australia, Peru, and Vietnam.

New Zealand has seen the benefits of liberalizing trade in the Asia Pacific region through job creation and increases in exports. We believe that with the US in the TPP we have the opportunity to shape the future trade framework for the Asia Pacific. We also think this initiative will help support the United States Administration's plan to double exports. As the participants in the TPP negotiations look to create a 21st century agreement, this should assist with job creation and large and small business growth in cities like Houston," stated Ambassador Ferguson.

According to the Greater Houston Partnership, Houston's foreign commercial ties exceed 3,000 firms and organizations trading more than 259 types of products and services in 17 regions. Approximately 735 Houston companies and organizations report exporting products internationally. Many of these organizations are trying to understand how to reap benefits from the exploding Asian marketplace.

In March, President Obama announced that the United States would participate in negotiations of the TPP trade agreement that could have an affect on Houston's export sectors. The U.S. will engage with an initial group of seven like minded countries, Singapore, Australia, New Zealand, Chile, Brunei, Peru and Vietnam. The agreement is intended to help expand American exports thereby saving and creating more jobs here at home by eliminating tariffs between the members by 2015. The Asia Pacific's robust economies offer huge opportunities to grow U.S. exports, thereby creating and retaining high quality, high-paying jobs. According to the office of U.S. Trade Representative, Asia accounts for 27% of total U.S. jobs from exports. Expanding exports to the Asia Pacific region can contribute significantly to further job growth and economic recovery for working families.

"As a global investor for more than thirty-five years, I see the TPP as an opportunity for international investors and for foreign and U.S. businesses," states Robert Scharar, international investor and Fund Manager of four international mutual funds. "Companies able to provide their products and services in the Pacific region may have new profit and market opportunities that should positively impact their stock price. This pact should provide the U.S. with an important footprint into Asia where U.S. exports have been declining and should support Obama's goals of increasing export trade."

Courtesy of www.article-niche.com