The Obama administration is pushing for the Trans-Pacific Partnership (TPP) Agreement to be approved because it would create major free trade between the U.S. and Pacific Rim countries by eliminating trade tariffs. Negotiations have been in the works since 2009 and the deal includes 11 nations other than the U.S., such as Australia, New Zealand, Chile, Canada, Mexico, and Japan. One company that really hopes the trade deal goes through is Nike.
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President Obama is visiting Nike’s headquarters in Oregon to gain support for the TPP Agreement. That’s because Nike said they would create 10,000 new engineering and manufacturing jobs in the U.S. over the next decade if the trade agreement is approved. That could indirectly create as many as 40,000 new jobs in the U.S.
Mark Parker, CEO of Nike said, “Our employees and our business depend on free trade and the ability to reach athletes and consumers around the world.” Right now, Nike must pay footwear imports to their suppliers around the world and this takes away from their profits. Nike also spends tens of thousands of dollars on jobs in low-cost countries, such as Vietnam.
Of course, the TPP Agreement is still far from being approved. Many people argue that it would make the U.S. an even less desirable place for manufacturing jobs because Pacific Rim countries can still provide the labor at a significant price savings to businesses. They say the TPP agreement could actually cause more jobs to be sent out of the U.S.
Tom Chamberlain, President of the Union’s Oregon Chapter said, “We don’t need another trade deal that benefits multinational corporations, their shareholders, and executives. We need to be more concerned about American work boots than sneakers made in Asia for pennies on the dollar.” Nike supports the TPP Agreement, but there are still many hurdles to overcome before it will be approved. [/show_to]