An agreement was recently reached regarding the Trans-Pacific Partnership (TPP), a trade agreement between 12 countries along the Pacific Rim. The agreement is designed to promote international trade by cutting taxes and tariffs on imports and exports, as the Pacific Rim region accounts for 40 percent of the global economy.
According to the federal government, the TPP eliminates foreign taxes on products exported from the United States. Currently, taxes can be as high as 70 percent for automotive parts. President Obama also believes that the agreement will prevent countries in the Asia-Pacific market from creating preferential trade deals with one another.