TPP in Real Life: TPP Will Benefit All Aspects of John Deere’s Business, Supporting Growth and Jobs in the United States

By October 4, 2016Shopfloor Policy, Trade

The Trans-Pacific Partnership (TPP) will benefit all aspects of John Deere’s business, enabling this iconic U.S. manufacturer of farm, forestry and construction equipment to continue to manufacture and grow in 23 locations across 11 states and sell equipment via independent dealers in all 50 states. From the agreement’s elimination of tariffs and barriers faced on the export of remanufactured goods to new rules preventing data localization measures and requiring additional transparency in the development of product standards and predictability for cross-border shipments, the TPP is a strong agreement for Deere, its hundreds of suppliers across the United States and for its customers.

John Deere Harvester Works employee in East Moline, Illinois. Photo courtesy: John Deere

John Deere Harvester Works employee in East Moline, Illinois. Photo courtesy of John Deere.

As J.B. Penn, Deere’s chief economist says, “Deere exports equipment to most TPP countries, and the elimination of all tariffs levied on these exports is a major reason why we support the agreement’s ratification. For example, tractors produced in Waterloo, Iowa, incur a 15 percent tariff when shipped to Vietnam, while harvesters produced in East Moline, Illinois, face a 5 percent tariff in that market. Both tariffs will be eliminated under the TPP, making our products much more price competitive. Also, Malaysia’s 20 percent tariff on the 650K Dozer and the 10 percent tariff on the four-wheel-drive loader will both fall to zero, giving a big boost for Deere’s construction and forestry business.”

Penn adds, “Deere also supports the TPP because of its benefits to our domestic customers. U.S. farmers and ranchers are some of Deere’s most enthusiastic customers, and they will be among the biggest beneficiaries of the TPP’s expanding market access provisions. Whether through the reduction of barriers in the Japanese beef market or the elimination of tariffs on corn exported to Malaysia, U.S. farmers and ranchers finally will be competing on a more level playing field, in turn boosting demand for equipment manufactured by Deere right here in the United States.”

John Deere 9RX Series Tractor, built in Waterloo, Iowa. Photo courtesy: John Deere

John Deere 9RX Series tractor, built in Waterloo, Iowa. Photo courtesy of John Deere.

Furthermore, as Penn says in a recent video, “John Deere strongly supports ratification of the TPP because freer trade is not just good for our customers and our company; freer trade is good for all of us.”

Read more from the TPP in Real Life series here.

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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