U.S. Health Products Exporters Currently Face Barriers in New TPP Markets**
$8.9 Billion in U.S. Health Product Exports to New TPP Markets in 2014
Health Products Exports Face Tariffs in New TPP Markets up to 30%
Red Tape, Border Delays, and Customs Inefficiencies Increase Costs and Impede the Flow of U.S. Exports Throughout the Region
Importance of the U.S. Health Product Sector
646,000 U.S. Health Product Workers in 2014
Accounted for 5% of Total U.S. Manufacturing Production in 2013
$91.8 Billion in U.S. Health Products Exports to the World in 2014
U.S. Health Products Exports to the World Grew by 14% between 2009-2014
26% of Total U.S. Health Products Exports to the World in 2014 Went to the TPP Region
The Health Products Sector includes products such as pharmaceuticals, medical supplies, and medical devices
99.9% of U.S.Health Products Exports to New
TPP Markets will Enjoy Duty-Free Access Immediately
(Share of Exports by Tariff Elimination Basket)
Percentages rounded up to nearest whole number.
Move the slider to see the percentage of goods that will become
duty-free over a certain amount of time
Opportunities for Selected Health Products
The United States exports $4.0 billion in pharmaceutical products to the new TPP markets annually. Yet, those exports currently face barriers in the region, such as tariffs as high as 10% in Vietnam. Under TPP, all tariffs on pharmaceutical products will be eliminated immediately. In addition, TPP’s Technical Barriers to Trade (TBT) chapter and annex remove further barriers to U.S. pharmaceutical exports by requiring TPP countries to promote transparent and open practices when regulating pharmaceuticals products.
The United States exports $5.0 billion in medical devices to the new TPP markets annually. Currently, the United States faces tariffs as high as 30% on certain medical devices in Malaysia. Under TPP, the tariffs on 99.9% of U.S. exports of medical devices will be eliminated immediately, helping to make U.S. products more competitive in the region.
TPP contains additional benefits for America’s competitive remanufacturers of medical devices. Remanufactured medical devices such as imaging equipment, often cost 50%-75% less than original equipment, yet are manufactured to the same standards. This makes them attractive investments for hospitals and facilities in the TPP region. TPP ensures that U.S. remanufactured medical devices are not unfairly hindered in TPP markets by requiring that remanufactured devices be afforded the exact same treatment as original equipment.
• For more information on the HS lines included in this sector report, please see this document.
* TPP Countries: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru,
Singapore, the United States, and Vietnam
** New TPP Countries: Countries with which the United States currently does not have preferential
market access - Brunei, Japan, Malaysia, New Zealand, and Vietnam
For more information on the methods and calculations used, please see this guide.
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