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 OPPORTUNITIES FOR THE U.S. TRANSPORTATION EQUIPMENT SECTOR
 Trans-Pacific Partnership

U.S. Transportation Equipment Exporters Currently Face Barriers in New TPP Markets**


$10.1 Billion
in U.S. Transportation Equipment Exports to New TPP Markets in 2014


Transportation Equipment Exports Face Tariffs in New TPP Markets up to 25%


Border Delays, Red Tape, and Other Customs Inefficiencies Increase Costs and Impede the Flow of U.S. Exports Throughout the Region


Importance of the U.S. Transportation Sector

681,000 U.S. Transportation Equipment Workers in 2014


Accounted for 4% of Total U.S. Manufacturing Production in 2013


$123.8 Billion
in U.S. Transportation Equipment Exports to the World in 2014


U.S. Transportation Equipment Exports to the World Grew by 49% between 2009-2014


26%
of Total U.S. Transportation Equipment Exports to the World Went to the TPP Region

The Transportation Equipment Sector includes products such as commercial aircraft, turbojets and turboprops, aircraft engines, parts of railway rolling stock, and miscellaneous aircraft parts

Key Market Access Benefits

Japan will eliminate import taxes on 100% of U.S. transportation exports immediately

Malaysia will eliminate import taxes on 100% of U.S. transportation exports immediately

New Zealand will eliminate import taxes on 100% of U.S. transportation exports immediately

Vietnam will eliminate import taxes on 75.6% of U.S. transportation exports immediately and 100% within 4 years

New TPP Partners are Significant Markets for
U.S. Transportation Equipment Exports

Japan $7.2 Billion
New Zealand $1.3 Billion
Malaysia $1.1 Billion
Brunei $425 Million
Vietnam $33 Million

U.S. Transportation Equipment Exports Currently Face
High Barriers in New TPP Markets...

tariff

...Which Will Be Eliminated Under TPP.

99.9% of U.S.Transportation Equipment 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.


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Move the slider to see the percentage of goods that will become
duty-free over a certain amount of time

Opportunities for Selected Transportation Equipment Subsectors

aerospaceAerospace

TPP will provide new opportunities in the region for U.S. exporters of aircraft and aerospace equipment. Under TPP, the elimination of tariffs on components and inputs will help to reduce costs for U.S. aerospace exports. Likewise, TPP’s streamlined customs provisions will cut red tape and facilitate trade throughout the region, further enhancing the U.S. industry’s competitiveness.

trainRailway Equipment

The United States is a competitive producer of railway equipment including railway rolling stock, switching equipment, and signaling and safety equipment. However, U.S. exports of railway equipment face tariffs of 5% in Malaysia and New Zealand, making those products less competitive compared to Chinese goods which face low or zero tariffs in those markets. Under TPP, both those countries will eliminate tariffs on all U.S. exports of railway equipment immediately.

• 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.

divider

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