TPP in Real Life: Smiths Group’s U.S. Exports Save and Protect Lives Around the World

If you have put your bags through a security screening device at airports and federal buildings or have known anyone who has needed out-patient oncology treatment, then you, like hundreds of millions of other Americans, have likely benefited from the technology manufactured by Smiths Group here in the United States, without ever realizing it.

Smiths Group employs more than 8,000 people in the United States at facilities in 40 states and across five divisions: John Crane, Smiths Medical, Smiths Detection, Smiths Interconnect and Flex-Tek. The company develops and applies leading-edge technology to create innovative products and solutions that range from health care, energy and petrochemicals to threat and contraband detection, telecommunications and equipment manufacturing. Though its headquartered in the United Kingdom, about one-third of Smiths Group’s workforce, half of its capital base and half of its revenue are located in the United States.

Smiths Medical Headquarters in Plymouth, MN. Photo Courtesy: Smiths Group

Smiths Group’s medical headquarters in Plymouth, Minn. Photo courtesy of Smiths Group.

While sales in the United States are important to Smiths Group, as reflected by its big investments throughout the United States, so too are sales overseas. As the company seeks to expand its U.S. production, it also is working to export around the world medical technologies that save lives, screening technologies to help governments protect their citizens and products and services that ensure communities have the energy needed to power their societies. That is why trade agreements that will eliminate foreign trade barriers and improve standards, such as the Trans-Pacific Partnership (TPP), are so important to Smith Group’s U.S. operations and its employees.

For example, the United States currently exports $5 billion worth of medical devices to TPP markets each year. Currently, the United States faces tariffs as high as 30 percent on certain medical devices in Malaysia. Under the TPP, the tariffs on 99.9 percent of U.S. exports of medical devices will be eliminated immediately, making Smiths Medical’s lifesaving technologies more readily available to patients in need.

Smiths Medical’s CADD®-Solis VIP Ambulatory Infusion system. Photo Courtesy: Smiths Group

Smiths Medical’s CADD®-Solis VIP Ambulatory Infusion system. Photo courtesy of Smiths Group.

Another one of Smiths Group’s business divisions, John Crane, designs, manufactures and services a variety of products, including mechanical seals, couplings, bearings and filtration systems for industrial rotating equipment. This equipment is critical to the safety, efficiency, reliability and environmental footprint of rotating machinery.

A significant portion of John Crane revenue comes from the export of products to TPP countries, including Australia, New Zealand, Singapore and Vietnam. Once the TPP is implemented, the duty savings for John Crane’s exports of these goods to TPP countries will be reinvested to improve and expand its U.S. operations.

John Crane Mechanical Seal used in Centrifugal Compressor Applications. Photo Courtesy: Smiths Group

John Crane mechanical seal used in centrifugal compressor applications. Photo courtesy of Smiths Group.

According to Chris Swonger, senior vice president of global government relations, “TPP is a unique opportunity for companies like Smiths Group to increase sales of goods and services in overseas markets through the elimination of unnecessary tariffs. As a result of these duty savings, Smiths Group will be able to expand research and development in new technologies, supporting new jobs and manufacturing in the United States.”

The next time you put your bags through a security device or stop by the doctor’s office, take a look to see if you benefit as well from a Smiths Group product manufactured here in the United States.

Click here to read more TPP in Real Life stories.

Ken Monahan

Ken Monahan

Director for International Trade Policy at National Association of Manufacturers
Ken Monahan is the Director for International Trade Policy at the National Association of Manufacturers (NAM), where he works with NAM member companies to develop and advocate the association’s positions and priorities on trade agreement negotiations, ensure enforcement of existing trade agreement commitments, and other issues including the World Trade Organization (WTO), miscellaneous tariff bills, data flows and privacy, conflict minerals, forced localization, and other bilateral country trade matters (e.g., Colombia, South Korea, and the European Union and its member states). Mr. Monahan has on-the-ground experience negotiating trade agreements, having worked at the U.S. Department of Commerce on the WTO Doha Round negotiations, the U.S.-Korea free trade agreement and other international trade matters.
Ken Monahan

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