TPA increases opportunities for Delaware businesses and employees

Delaware has long distinguished itself as a business-friendly state in a variety of industries.  The Dow Chemical Company has been investing here for over 40 years for that reason, and as a result, has helped make the state a hub for chemical manufacturing. Our facility in Newark manufactures products used in the fabrication of almost every type of electronic chip for computers, and in our increasingly connected world, those components and chips are exported around the globe.

Currently, international trade supports over 123,000 jobs in Delaware – more than one in five – and exporters on average pay higher wages. On top of that, trade-related jobs grew six times faster than total employment over the past decade. Add that to the fact that 87 percent of Delaware exporters are small-and medium-sized businesses, and the case is pretty clear that trade is integral to Delaware’s economy.

For Dow, growing our customer base overseas has enabled us to grow our workforce here at home. At our Newark facility, we employ more than 530 employees who manufacture Chemical Mechanical Planarization (CMP) products, including polishing pads, which are used to create the flawless surfaces required to make faster and more powerful integrated circuits and semiconductors. We exported 80 percent of all pad materials manufactured out of Newark last year. That’s a significant percentage, but with 95 percent of the world’s population living outside of the United States, we will continue to become more dependent on our global consumer base to grow.

This is where trade agreements come in. Without trade agreements, there are often barriers to entry – including high tariffs and regulatory differences – that make it difficult for U.S. companies to sell their products in foreign markets. With trade agreements, barriers are lowered or eliminated to pave the way for more foreign consumers to gain access to U.S. goods and services.

To get a sense of what fewer barriers mean to Delaware, consider this: In 2013, trade agreement partners purchased 4 times more goods per capita from Delaware than non-trade agreement partners.

The good news is the United States is currently negotiating new trade agreements with European, Latin American and Pacific countries that could increase access to key markets for companies like Dow. However, there remain some hurdles we need to clear to finalize these new agreements. The single best way to move these agreements forward is for Congress to pass something called Trade Promotion Authority, or TPA.

TPA streamlines the negotiating process for trade agreements. It empowers Congress to call the shots on negotiating priorities and consultation, while also requiring an up-or-down vote by Congress, without amendments, on a final deal. This not only allows the United States to speak with one voice at the negotiating table, it gives our trading partners the confidence they need to make their best offers.

This may sound procedural, but TPA is a critical part of the process. In fact, just one trade agreement has been finalized in the past 40 years without it.

Recently, legislation to renew TPA – the Bipartisan Congressional Trade Priorities and Accountability Act – passed out of key House and Senate committees on a bipartisan vote. The next step is for TPA to be considered by the full House and Senate.  It’s expected to be considered by the entire Congress soon, which is why we are asking for your support. If you want to help increase opportunities for Delaware businesses and employees, call your member of Congress and ask them to vote for the Bipartisan Congressional Trade Priorities and Accountability Act.

Schulz is site leader for Dow Chemical Company’s Delaware Operations.