ITC Report on TPP: A Mixed Bag for the Auto Industry

The 792-page report, entitled Trans-Pacific Partnership Agreement: Likely Impact on the US Economy and Specific Industrial Sectors will trigger Congressional hearings in the weeks ahead and eventually a US ratification vote.

For its limited intended purposes, the ITC report on the automotive sector presents no real surprises. Generally, the report predicts modest gains for the industry, most notably for US finished vehicle production. It also believes auto parts will see slight gains. While the report will probably not provide fuel to accelerate TPP ratification in the US, the automotive analysis contains nothing that could be viewed as a deal breaker for the TPP’s ultimate approval.

Conclusions and observations by the ITC are drawn largely from industry spokespersons and previous testimonies before the commission. The analysis focuses on the economic impact of transactional duty elimination within the TPP community for finished vehicles and parts.  As the authors point out, the analysis does not take into account any significant changes in automotive investment policy by either corporate investment shifts or the expansion of government agreements.

To read our full analysis, click here.