Trump came for factories and production capacity in the TPP member of the manufacturing enterprises, is not what good news.

Obama's TPP bubble
The Obama administration announced in November 12th that it would not seek to allow Congress to pass TPP during his term of office. In the election, Trump has declared to end TPP and other free trade agreements signed by the United States. That is to say, the possibility of TPP being passed by the US government has become less likely.



Obama's TPP finally got out of the way

The full name of TPP in Chinese is a transpacific partnership agreement. The member states include the 12 countries: the United States, Japan, Australia, Brunei, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. It aims to promote free trade among Member States, which will eliminate or reduce tariff and non-tariff barriers to goods, trade and investment in trade. That is to say, the price of goods between the TPP members will be cheaper.

You said Donald Trump will agree? Trump Obama, the former is a businessman, what are the interests of businessmen from the point of view.  TPP dog in the manger, not only to the good and bad things, such as a business person is difficult to accept.


Have to admire the Trump will do business with the old driver

Take the footwear products, because there is no tariff, the price will be lower, and the gross interest rate of the enterprise is not reduced, which is more favorable to the brand. And consumers are likely to buy more products.

According to the research of FootwearDistributorsandRetailersofAmerica, the largest industry association of footwear products in America, if TPP is effective, it will save 500 million dollars for American consumers and shoe brands in the first year. In the first ten years, it is expected to save $6 billion.  It believes that TPP can promote innovation in twenty-first Century shoe track products and bring more jobs (apparently non - manufacturing jobs).

And the TPP did not pass, and these "prices" and the expected "rise in sales" lost good news. The American shoe brand is more sad because most of their shoes are produced in foreign factories. According to the data from the US International Trade Commission (InternationalTradeCommission), in 2015, 98% of footwear products sold in the US were imported to 27 billion 700 million yuan.

A very small part of the shoe track product (2%) is produced in the United States. NewBalance, Keds, Frye and other brands have the "American made" series. But for the brand, it is more like a means of marketing and product portfolio strategy: the slogan is patriotic, can attract some consumers; American manufacturing series price will be 50%~100% higher than the same brand China or Vietnam manufacturing price, may be more high-end positioning.

Vietnam shoe companies cry
Among the TPP12 countries, two of the most important countries for the United States are Vietnam and Canada. Vietnam is the second largest importer and the third largest exporter of American footwear. On this point, it is the biggest competitor of the Chinese footwear factory. When TPP was not in effect, Wolverine, the parent company of shoe brand Keds and Sperry, began to expand productivity in Vietnam. Because a lot of shoe companies value one of them because of TPP. Now TPP says it's okay. Can you guess who saw the shoe enterprises in Vietnam, is not the tears suddenly had wandered not stopped flow out.

Another country that has been greatly affected is Canada. It is the largest exporter of footwear made in the United States. In 2015, it accounted for 34% of the US $1 billion 500 million export market. If the North American Free Trade Agreement (NAFTA) is overthrown or renewed by Trump, the footwear products of the US may increase in price, and sales in Canada will become worse.

The good days of Chinese shoe companies are coming
If the US gave up TPP, it might be good news for China's manufacturing industry. At present, the largest importer of American shoe track products is China, accounting for 62% of the total import of footwear. Over the past few years, Vietnam, Indonesia and other countries are already transferring capacity to other Southeast Asian countries, such as Adidas and Nike, because of cheaper labor and construction costs than China.

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