Published
May 12, 2015
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Nike supports draft of Trans-Pacific Partnership by promising creation of US jobs

Published
May 12, 2015

An easing of customs duties between Vietnam and the United States for footwear could allow Nike to create 10,000 jobs...in the United States.

In any case, that’s what the US giant has announced in an effort to win support for President Barack Obama in his quest to pass the Trans-Pacific Partnership (TPP). 

US President Barack Obama on a visit to Nike headquarters - Nike


The Partnership happens to be one of the American President’s major second-term objectives. The agreement was initiated in 2005 by Brunei, Chile, New Zealand and Singapore, with the aim of simplifying trade between several countries that touch the Pacific. Since 2008, the United States, Australia, Vietnam and Peru have been in negotiations to participate in the zone. In total, twelve countries could join the club, including Mexico, Malaysia, Canada, and Japan. 

But even in the US, billed as a very liberal country, such an agreement has far from garnered unanimity. President Barack Obama seems to be having a difficult time convincing several Democrats of the value of a signature. They are concerned that companies will move to countries where the cost of labor is lower, taking advantage of reduced import taxes. 

"On this issue, on trade, I actually think some of my dearest friends are wrong. They’re just wrong," said US President in May...from Nike headquarters. 

In supporting President Obama, Nike has stressed that the treaty, for which the company has long campaigned, would "accelerate development of new advanced manufacturing methods and a domestic supply chain to support U.S.-based manufacturing." The group estimates that 10,000 manufacturing and engineering jobs could be created within 10 years as well as some 40,000 indirect jobs.

Nike CEO Mark Parker shaking hands with Barack Obama - Nike


It’s a big commitment considering that about a million people work for Nike around the worldly, while only 26,000 are in the United States. 

However, the argument hasn’t convinced everyone: "We have heard similar promises from large companies in the past. Few have actually followed through," said Eric Hauser, a representative from the AFL-CIO.

For Nike, a free trade agreement for footwear is a major issue: the company has almost a third of its factories in Vietnam, which is also involved in TPP negotiations. 

According to data from Footwear Distributors and Retailers of America, almost all of the products sold in the US are produced abroad, with import taxes at between 25% and 35% in the United States. Import taxes on footwear produced in countries included as part of the TPP represented some 400 million US dollars in 2014. 

For that reason, almost all American footwear players, including Nike, would clearly like the Pacific negotiations to come to fruition.

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