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Trade with the Asia-Pacific Benefits Michigan's Businesses and Workers

The Trans-Pacific Partnership offers tremendous opportunities for U.S. exporters. In a world where 95 percent of consumers reside outside our borders, the Asia-Pacific region comprises 40 percent of the global population. These dynamic economies are growing faster than the world average and generated 56 percent of global GDP in 2009. The Asia-Pacific region is the largest market in the world for U.S. exports and receives two-thirds of U.S. agricultural exports. The Obama Administration is committed to increasing these exports and creating more jobs here at home through the TPP.

This week, USTR.gov will highlight how states across the country benefit from trade with the Asia-Pacific Region. Today, we are showcasing Michigan.

Jobs supported by Michigan’s goods exports are estimated to be 293,000. Michigan’s manufacturing exports accounted for 27.4 percent of its manufacturing output. More than one-quarter (27.8 percent) of all manufacturing workers in Michigan depend on exports for their jobs, the fifth highest among the 50 states. Although not measured, there are also additional jobs supported by Michigan’s exports of services.

A total of 11,205 companies exported goods from Michigan locations in 2007. Of those, 10,057 (90 percent) were small and medium-sized enterprises (SMEs), with fewer than 500 employees.

Michigan’s export shipments of merchandise in 2009 totaled $32.6 billion. Of Michigan’s total exports, $25.5 billion, or 78 percent, went to markets in the Asia-Pacific region. The top three product categories to TPP member economies exported in 2009 were transportation equipment, machinery manufactures, and chemical manufactures.

Small and medium-sized firms generated 12 percent of Michigan’s total exports of merchandise in 2007. Notably, small and medium-sized firms benefit from the tariff-elimination provisions of free trade agreements. The transparency obligations, particularly those in the customs chapters, are vital to small and medium-sized firms, which may not have the resources to navigate customs and regulatory red tape.