TPP From the Shop Floor Reason #18

October 4, 2016

Why support the Trans-Pacific Partnership (TPP) trade agreement?

Caterpillar has been a consistent, forceful voice for trade throughout our 90-year history. We compete best in a free trade environment. This trade agreement aims to reduce trade barriers among the 12 participating countries that all border the Pacific Ocean. Caterpillar strongly urges Congress to support passage of the TPP.

Highlights include:

  • Global Competitiveness:  18,000 taxes imposed by participating countries will be eliminated for American-made goods, which reduces the overall price tag for Caterpillar equipment, helping to make us more competitive.
  • Market Access: With TPP, remanufactured goods will be treated the same as new products for the first time in a trade agreement.
  • Tariff Reductions: Caterpillar, its dealers and customers stand to benefit from millions in savings from tariff reductions agreed to by TPP countries. TPP eliminates tariffs on all U.S. manufactured goods exported to TPP countries.
  • U.S. Leadership: TPP allows participating countries to modernize and update the rules of international trade to better reflect the 21st century global economy.
  • Rules of Origin: Rules of origin in TPP represent the current realities of global business, and will allow more of our products than ever to qualify for the benefits of the agreement.

All of this means a level playing field that it will make it easier for us to sell more products to customers all over the world. More sales mean more orders and more machines for us to build, keeping us hard at work. Caterpillar employees know the importance of free trade. In the past five years, Caterpillar has exported more than $87 billion in products made at our factories in the United States—exports that support tens of thousands of U.S. jobs.

Let’s take a closer look at what TPP means at Caterpillar East Peoria.

MULTIPLE LIVES: A WIN-WIN-WIN

The language in the TPP clearly acknowledges that remanufactured goods must be treated the same way as new goods. 

Learn More