Boeing Endorses Progress On Trans-Pacific Partnership Agreement
Boeing CEO Dennis Muilenburg signs Trans-Pacific Partnership Agreement with countries that cover 40% of the global economy.
Boeing Company’s executive, Dennis Muilenburg, signed the Trans-Pacific Partnership Deal on Monday, between the US, Japan, New Zealand, Singapore, Australia, Chile, Vietnam, Brunei, Malaysia, Canada, Peru, and Mexico making it the largest state agreement in history, covering countries that make 40% of the international economy. This will boost the company’s global value and competition immensely.
More than 70% of the company’s commercial airplanes revenue came from consumers outside USA in the previous year. 90% workforce being domestic and 80% suppliers are domestic. According to Dennis, more opportunities are created for American workers and companies through free-trade agreements and that the contract will help in contributing to the rapidly boosting market of exports through aircrafts.
Boeing co. predicts that its major market and consumerism will be from Asia, mainly for aircrafts. The estimation is 13,460 planes that would cost $2 trillion, which is double of what they sell in Europe, according to USA Today. Michael Forman states that the contract shows 18,000 tax cuts by removal of tariffs, which are 50% higher on other machineries. Trade representatives are proud about this deal due to their patriotism as product will have ‘made in America’ written on them.
This is a huge achievement, as it would contribute in blurring the border regulations leading to the removal of customs through just one document. It is beneficial for other traders as well. Now other countries will now be more open to the idea and would want to benefit from it – the consumers as well as the companies. Many countries are willing to join the agreement, but China is not yet one of them. The agreement has eight years of trade between the U.S. and the countries, as stated in the document.
The Chicago-based company has to keep in mind that the products it exports should be top quality and tested before the export, so that there are no further hassles. Since the organization has been in the manufacturing, exporting, and selling business for so long, it should not be difficult for it to understand this.
Other U.S. companies should be able to compete and win in international markets so that jobs within the country have better wages. Boeing has around 165,000 workers currently. This agreement will make the company grow on every scale. The contract will mutually benefit all countries in terms of business, but it also raises the bar for quality checks and other conditions.
Boeing Stock closed at $134.83 on October 16, 1:30 PM.
