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US National Retail Federation calls on Congress to enact trade pact

THE recently negotiated Trans-Pacific Partnership trade agreement will have a positive impact on both retailers and American consumers once enacted, according to a new report released by the National Retail Federation.

"This report shows the importance of international trade to the US economy and how TPP creates economic growth and opportunity in the United States," said NRF president and CEO Matthew Shay.

"Congress should move quickly to approve this agreement so American workers, consumers and businesses can begin to realise those advantages as soon as possible," he said.

"The Trans-Pacific Partnership agreement holds potential for retailers and American families," the report said.

It also said prices of imported retail merchandise are driven up considerably by tariffs, which amount to hidden taxes on consumers that can range as high as 67.5 per cent on footwear or 32 per cent on apparel, for example.

Tariffs on goods from TPP countries totalled nearly US$6 billion in 2015, and nearly all would eventually be eliminated after the measure is enacted, which would benefit consumers through lower prices.

The report found that international trade is a major supporter of US employment, accounting for 6.9 million US jobs in the retail industry.

"The TPP will have a significant positive impact on American families, workers and the retailers who seek to provide them with a wide range of goods at affordable prices," according to the report, which was prepared for NRF by the Trade Partnership.

"It will lower costs across global supply chains in the TPP region, and those lower costs will be reflected in US price tags. Families will benefit from greater spending power both from lower prices and higher wages."

In addition to the economic value of eliminating tariffs, the report highlighted labour and environmental protections in the agreement that would be valuable to US retailers.

"TPP will make it much easier for retailers to ensure that factories in TPP countries adhere to labour and environment conditions in their codes of conduct," the report said, citing prohibitions against child and forced labour and protections for endangered species.