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 OPPORTUNITIES FOR THE U.S. MACHINERY SECTOR
 Trans-Pacific Partnership

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


$4.4 Billion
in U.S. Machinery Exports to New TPP Markets in 2015


Machinery Equipment Exports Face Tariffs in New TPP Markets Up to 59%


An Estimated $75 Million in Duties are Levied on U.S. Exports of Machinery in New TPP Markets Every Year


Importance of the U.S. Machinery Sector

1.4 Million U.S. Machinery Workers in 2015


Accounted for 6% of Total U.S. Manufacturing Production in 2014


$111.4 Billion
in U.S. Machinery Exports to the World in 2015


U.S. Machinery Exports to the World Grew by 24% between 2009-2015


46%
of Total U.S. Machinery Exports to the World in 2015 Went to the TPP Region

The Machinery Sector includes products such as forklifts, motors, bulldozers, pumps, water filtration and purification machinery

Key Market Access Benefits

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

Malaysia will eliminate import taxes on 94.4% of U.S. machinery immediately

Vietnam will eliminate import taxes on 82.9% of U.S. machinery immediately and 99.5% within 4 years

New Zealand will eliminate import taxes on 93.4% of U.S. machinery immediately

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

Japan $2.8 Billion
Malaysia $855 Million
New Zealand $417 Million
Vietnam $311 Million
Brunei $31 Million

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

tariff

...Which Will Be Eliminated Under TPP.

96.8% of U.S. Machinery 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 94%; Vietnam 83%; New Zealand 93%; Brunei: 80%.
percent of chemical exports that will be duty free in four years or less: Malaysia 94%; Vietnam 100%; New Zealand 95%;
percent of chemical exports that will be duty free in 11 years or less: Malaysia 100%; New Zealand 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 Machinery Subsectors

agricultureAgriculture Equipment

Vietnam applies tariffs as high as 45% on U.S. agricultural equipment, while competing products from China and Korea face significantly reduced—or zero—tariffs. Under TPP, Vietnam will eliminate tariffs on 99.9% of U.S. agriculture equipment exports within four years—leveling the playing field for U.S. producers. Likewise, New Zealand will eliminate tariffs, which range as high as 5%, immediately on 100% of U.S. exports of agriculture equipment.

RVConstruction Equipment

America’s high-quality construction equipment exports face tariffs as high as 59% in Vietnam and 30% in Malaysia. At the same time, Chinese-made construction equipment faces much lower tariffs in those markets. TPP will level the playing field for U.S. producers by immediately eliminating Vietnamese tariffs on 97.4% of U.S exports. Similarly, Malaysia will eliminate tariffs on 95.1% of U.S. construction equipment exports within four years.

plasticsRemanufacturing

The United States is the world’s largest remanufacturer, and TPP contains additional benefits for America's competitive remanufacturing industry. TPP specifies that remanufactured goods should be afforded the same treatment as new goods. Additionally, TPP promotes remanufacturing within the region by ensuring that recovered materials used in remanufactured goods count as TPP materials, allowing more goods to count as TPP originating and enjoy the Agreement’s benefits.

• 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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