Point blank: foreign trade agreements are good for U.S. exports. By accomplishing two enormous and high standard trade agreements, the United States would see trade soar and economies benefiting worldwide.  That was the message coming from Secretary of State John Kerry in Washington, DC, who addressed a crowded ballroom of over 1000 CEOs and economic developers from the United States and around the globe on November 1 at the SelectUSA summit, part of a new Department of Commerce initiative to support U.S. economic development and foreign direct investment. Secretary Kerry outlined the many benefits that can be derived by successfully concluding the Trans-Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership (TTIP). Those include raising the standards of business and the possibilities for job growth around the world.  The TPP, which will integrate Australia, Brunei, Chile, Canada, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States, and Vietnam, represents 40 percent of global trade. “When you link that to TTIP, which will bring in Europe -- the largest market in the world, and join it to the largest individual economy in the world, these partnerships will create an enormous transformation in the standards by which people are practicing,” Secretary Kerry stressed. “Those efforts dramatically increase the market reach of the United States and strengthen rules of trading. That helps everyone compete, while ensuring strong protections for workers, consumers and the environment.”  Tennessee Governor Bill Haslam, who sat on a panel discussing how global companies benefit from U.S. free trade agreements and bilateral investment treaties, stressed how trade agreements have impacted exports in his state.  Tennessee benefits from an enormous flow of trade via the Federal Express hub in Memphis and exports such as cars, medical supplies, even Jack Daniels whiskey. “We export $2 billion a year to China and $5.3 billion a year to Europe,” he said. “Tennessee is home to 880 different foreign companies, many of which sprung up in the automotive sector thanks to Nissan.  Some 14 percent of all cars produced by Nissan in Tennessee are for export.”  Governor Haslam believes that a successful TTIP would increase Tennessee-made auto exports to Europe alone by about 900 million units. He emphasized that if the TTIP treaty were passed it could increase chemical exports nationwide about $800 million a year.  “Eastman Chemical [a Tennessee company] would get a portion of that,” he said.  Ambassador Michael Froman, United States Trade Representative, pointed out that 20 percent of U.S. exports come from subsidiaries of foreign firms that have located in the United States. He emphasized that the United States currently has 45 bilateral investment treaties and 17 trade agreements that have investment chapters.  “Those chapters give U.S. investors protection for procreation, discrimination, injustice, access to mutual arbitration, and protections in other markets that we have agreements,” he said. “When we conclude those two free trade agreements, we will have created free trade with 65 to 75 percent of the world economy.” CEOs of key manufacturers pointed out that without the agreements, particularly TTIP, companies realize added costs when manufacturing in United States. Ludwig Willisch, CEO of BMW North America explained that BMW pays 10 percent import duties when exporting cars from its manufacturing plant in Spartanburg, SC to Europe. “Year by year, that’s $550 million just in costs,” he said. “And it’s not only about import fees, but different standards such as crash testing and emissions standards,” he says. “These costs have a huge impact on our competitiveness.” According to Governor Haslam, TTIP could increase auto exports by almost $1 billion, and overall exports could go to 35 percent of production totaling about $2 billion. He noted that lower energy costs, which saves money in transporting goods, is a particularly unique advantage in the United States.  Ambassador Froman particularly noted that TTIP offers a great opportunity to bring standards closer together. “And that’s not by deregulation or a lowering of safety or health standards, but eliminating unnecessary costs and frictions that get in the way of two well regulated markets,” he said.   Doug Oberhelman, CEO of Caterpillar concurred. “Standards differ globally regarding sounds, alarms and tail lights on back hoes and machines,” he said. “They vary country to country, The engineering and manufacturing changes draw costs up.”  The North American Free Trade Agreement (NAFTA) sets a good example as to how free trade agreements can be a winner for everyone.  “Virtually all data shows NAFTA has been a winner for all three countries,” said Oberhelman. “For us it has offered a huge advantage in the oil and gas business in Canada and a lot of development in Mexico. Without NAFTA, I am not sure where we would be with our export trade patterns in those countries.”  Governor Haslam concurred. “With NAFTA, our exports to Mexico are up 8 times; Canada, three times,” he said. “There are winners and losers, but overall, the state is well ahead.”  Willisch noted that free trade agreements negotiated in the last 20 years resulted in BMW’s production costs to decrease in the last 7 years. “This really shows how free trade translates into growth,” he said.  While TTIP is far from being concluded, government officials have high hopes for TTP.  “It doesn’t take long to open the spigot on imports and exports once tariffs come down and are synchronized,” Froman said.