Nike Will Create 10,000 US Jobs if Asian Trade Deal Gets Approved

Nike Inc. has recently pitched its support for President Obama’s idea to initiate a Trans-Pacific Partnership deal with Asian Countries which would help create job opportunities in different sectors such as manufacturing, engineering, service and supplying sectors as well as boost US economic growth, one of President Obama’s main goals.

“We believe agreements that encourage free and fair trade allow Nike to do what we do best: innovate, expand our business and drive economic growth,” said Mark Parker, Nike Chief Executive Officer.

Nike has successfully attained a reputation for being one of the best sportswear manufacturers in the world, with a workforce of approximately 26,000 in the United States. The company also supports around a 1 million manufacturing jobs worldwide through its 700 contract factories.

With President Obama visiting Nike’s headquarters in Oregon, the company has supported his attempt to establish a TTP deal which would ensure “10,000 manufacturing and engineering jobs in the US” as soon as Congress passes its approval.

However, other third party groups and rival companies insisting that such a trading deal will only lead to loss of jobs and lower pay rates.

The Trans-Pacific Partnership is an agreement which prioritizes the United States’ economy and helps it spread into markets, while easing trade routes and setting some ground trading rules for companies and exports.

The company commented that the TTP approval would boost investment in the company helping it manufacture “advanced footwear” and provide jobs in various sectors for unemployed individuals.

With Obama on its side, the company is pressing for lowering tariffs on footwear imports in the 12 nations mentioned in the Partnership agreement. However, other groups and lawmakers appear more apprehensive regarding the TTP agreement and seem to disagree with Obama’s measures to initiate international trade without any third party interference, thus proving a stumbling block in the realization of the company’s motives.

Nike has voiced its terms and stated that if the agreement does pass, the company would be creating job opportunities in the construction sector as well as for 40,000 individuals in supplying chains within the next decade. However, locations and payment details have not been clarified as yet.

It has also been suggested that Obama’s trip to Nike’s headquarters has been triggered by the company officials’ visit to the White House to highlight the importance of the issue, which amounts to the company’s terms being supported by the US President himself.

Source: Bidness Etc

Related: 4 Preferential Trade Agreements to Have on Your Radar in 2015