Trump'S Announcement That He Quit TPP Has Made The Sports Shoe Industry "Worried".

US President elect John trun has explained in common video that he will be in office on the 100 day after assuming office next January 20th. He said he would release the presidential executive order and withdraw from the p Pacific Partnership Agreement (TPP) on the first day of his presidency, calling TPP a potential disaster for the United States.

Nowadays,

Announcing the withdrawal from the TPP would not only mean that the large number of manufacturing jobs lost by the United States would not come back, but also that the cost of consumption would rise.

The history of TPP can be traced back to the "p Pacific Strategic Economic Partnership Agreement" (TPSEP) signed by Chile, New Zealand, Singapore and Brunei in 2005. This agreement provides reciprocal economic cooperation agreements in related fields such as goods, services, intellectual property rights, trade and investment.

Since the initial member states are four, it is also known as the "P4 agreement".

In 2008, following the US's high-profile announcement to join the P4 negotiations, plus Peru, Vietnam and Australia following closely, P4 upgraded to P8 and formally launched the TPP agreement negotiations in March 15, 2010.

Since then, with the accession of Canada, Mexico, Japan and other countries, P4 expanded rapidly to P12, and TPP was led by the United States and reached a basic agreement in October 5, 2015.

From a long-term perspective, TPP will eliminate tariffs on more than ten thousand products including automobiles, agricultural products, chemicals and consumer goods, and achieve zero trade tariffs in the region.

However, due to the difference of economic development level and industrial structure between the 12 participating countries, the impact of zero tariff on their domestic economy and industrial development is different.

It is reported that 98% of the United States last year.

From the total import of 2 billion 500 million pairs, the implementation of Jo Trump policy is undoubtedly a heavy blow to the global shoe industry.

According to analysts, some Nike like companies have invested a lot of mobile factories in countries with relatively low wage levels, though this will increase tariffs and the cost of American consumers.

However, some Brand Company executives said that after the withdrawal of TPP, import tariffs would be raised, which would increase the employment rate of the United States.

CEO, a shoe manufacturer in Amsterdam, pointed out that

The idea of pferring to developed countries is really subversive. As early as decades ago, the shoe industry had moved to a country with low wage levels, such as China, to complete a pair of shoes and had to go through over 80 processes.

According to the United States International Trade Commission, footwear workers in Vietnam earn an average of 245 dollars a month, while footwear tariffs can reach up to 48% of retail prices.

Matt Priest, chairman of the US footwear distributors and retailers, said that if the United States cancels the TPP agreement, consumers will have to pay higher prices for products, which will lead to a decline in sales.

According to New Balance, the cost of producing sports shoes in the United Kingdom is 25% to 35% higher than that in Asia. A spokesman for the company said that TPP had undermined the trade balance of the United States and provided more opportunities for its rival Nike to make more profits. The company supported the decision of the us to withdraw from the TPP.

The sports shoe industry is the first group to move factories to China and Vietnam in order to reduce production costs substantially. Nike and New Balance are dissatisfied with whether the United States should support TPP. But if Trump and the Republican controlled Congress withdraw from TPP, the production cost of sports shoes will increase substantially, resulting in the rise of commodity prices, which will have a serious impact on the whole sports industry.