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transport logo  OPPORTUNITIES FOR THE U.S. ENERGY PRODUCTS SECTOR
 Trans-Pacific Partnership

U.S. Energy Products Exporters Currently Face Barriers in New TPP Markets**


$1.1 Billion
in U.S. Energy Products Exports to New TPP Markets


Energy Exports Face Tariffs in New TPP Markets Up to 30%


An Estimated $24 Million in Duties are Levied on U.S. Exports of Energy Products in New TPP Markets Every Year


Importance of the U.S. Energy products Sector

61,000 U.S. Energy Product Workers in 2015


$38.5 Billion
in U.S. Production in 2014


$20.9 Billion
in U.S. Energy Products Exports to the World in 2015


40%
of Total U.S. Energy Products Exports to the World in 2015 Went to the TPP Region

The Energy Products Sector includes products such as turbines, solar cells, static convertors, civil nuclear equipment, and high-voltage electric conductors

Key Market Access Benefits

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

Malaysia will eliminate import taxes on 86.2% of U.S. energy products exports immediately and 89.8% within 4 years

New Zealand will eliminate import taxes on 99.6% of U.S. energy products exports immediately

Vietnam will eliminate import taxes on 98.1% of U.S. energy products exports immediately

Brunei will eliminate import taxes on 97.3% of U.S. energy products exports immediately

New TPP Partners are Significant Markets for
U.S. Energy Exports

Japan $699 Million
Malaysia $213 Million
New Zealand $53 Million
Vietnam $48 Million
Brunei $7 Million

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

tariff

...Which Will Be Eliminated Under TPP.

97.0% of U.S. Energy 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.

percent of chemical exports that will be duty free immediately: Japan 100%; Malaysia 86%; Vietnam 98%; New Zealand 100%; Brunei: 97%.
percent of chemical exports that will be duty free in four years or less: Malaysia 90%; Vietnam 100%;
percent of chemical exports that will be duty free in 11 years or less: Malaysia 100%; Brunei: 100%.

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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 Energy Products Subsectors

renewable sideRenewable Energy Equipment

U.S. exports of renewable energy equipment, such as wind turbines, currently face tariffs as high as 5% in the new TPP markets, but competing products from China face no tariffs. Under TPP, all tariffs on U.S. exports of renewable energy equipment will be duty-free immediately.

Energy GenerationPower Generation Equipment

Tariffs on U.S. exports of power generation equipment and components range as high as 25% in the new TPP markets. U.S. power generation manufacturers are at a disadvantage compared to their Chinese competitors, which face significantly reduced tariffs due to trade agreements China already has with TPP countries. TPP will help level the playing field for these products by eliminating tariffs immediately on 99.9% of U.S. exports of power generation equipment.

Energy TransmissionPower Transmission Equipment

U.S. exports of power transmission equipment, including high-voltage electric conductors face tariffs as high as 30% in Malaysia and 25% in Vietnam, but Chinese products face significantly reduced tariffs. Under TPP, 85.5% of U.S. exports of power transmission equipment will see immediate tariff elimination, with the remaining tariffs reduced over time to zero.

• 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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