The passage of the Trade Promotional Authority and a subsequent implementation of Trans-Pacific Partnership agreement would have significant impact for our port and our region. The TPP will provide Oregon with an opportunity to open new markets for its goods and services in countries that are not current free trade agreement partners.
Some regional products face stiff tariffs, from 34 percent and 13.6 percent for breads, pastries and frozen potatoes, respectively, to 70 percent for machinery. Although it is hard to say exactly how much we could increase shipping volumes, it is clear there is room to improve when these impediments are removed. Trade fuels the regional and state economies. Both Oregon and the Portland-Vancouver metro area are more dependent on trade than most other regions of the U.S. Of the nearly $21 billion in exports from Oregon last year, members of the TPP represent 44 percent of those receiving goods.
A much more liberalized trade relationship with Japan would be the most significant benefit of the TPP for the region. Japan continues to be the largest market for cargo exported from our port. With the elimination of tariffs, regional exports could also benefit from new market access as a result of Brunei, Malaysia, New Zealand, Vietnam and others.
Many of these policy changes would take time for effect, but the first indications will be apparent in a sense of anticipation and optimism throughout the trade industry.
The low price of fuel has been a significant factor recently both here and abroad and the effect is a mixed bag. It is not clear if there will be change in the immediate future, but it does not seem as it the price can go much lower.
Bill Wyatt, Executive Director, Port of Portland, Oregon