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OPINION

Lafley: Trade authority critical for growth

A.G. Lafley
Downy fabric softener moves on the production fill line at a P&G plant in Lima, Ohio.

A.G. Lafley is chairman of the board, president and CEO of Cincinnati-based consumer products giant Procter & Gamble.

Congress will vote soon on legislation known as Trade Promotion Authority (TPA), which will pave the way for significant trade agreements with some of America's largest trading partners and help the U.S. maintain its leadership role in the global economy. These agreements will benefit U.S. companies, employees, shareowners, and consumers. We need to ensure this legislation is passed.

TPA will lay the groundwork for two agreements currently being negotiated by the U.S. that hold particular promise for P&G, our employees, our shareowners and consumers. The Trans-Pacific Partnership, an agreement with 12 Asia-Pacific countries, and the Transatlantic Trade and Investment Partnership, a U.S.-European Union agreement, will define our nation's role in the global economy for decades to come. Together, these agreements will cover more than 50 percent of global trade, and they'll set a high standard for international trade and investment rules, which will help American companies large and small to compete on a level playing field.

A.G. Lafley

We'll reap benefits from these agreements here in Ohio and in Cincinnati. While more than 60 percent of P&G's sales come from the company's international operations, our growth outside the U.S. doesn't come at the expense of U.S. workers. It supports them. In fact, 1 in 5 of P&G's U.S.-based jobs – and 2 in 5 in Ohio – support our international business in areas such as marketing, innovation and supply chain management. If we're going to sustain and grow jobs like these, we need trade policy that reflects the realities of a 21st-century economy.

Existing free trade agreements have helped eliminate or reduce trade barriers globally – tariffs, quotas and unnecessary bureaucracy at the border. P&G benefits from these agreements because they've allowed us to create efficient, reliable supply chains and have expanded our access to markets around the world. The Trans-Pacific Partnership and Transatlantic Trade and Investment Partnership will go even further, addressing 21st-century trade issues like e-commerce, data flows and unnecessary regulatory differences.

Chemicals regulation is a good example. P&G manufactures products in both the U.S. and the European Union using some of the same chemicals. Regulators on both sides of the Atlantic agree that these chemicals are safe, but they use different systems and requirements to reach that conclusion. Regulations don't necessarily have to be the same on both sides of the Atlantic, but if our governments talk to each other, share data and recognize each other's outcomes where appropriate, U.S.-EU trade will expand, the total cost to deliver our products is reduced, and consumers have equal access to our brands' latest innovations. Governments, companies, employees, shareowners and consumers all win.

Government trade policies that expand access to markets for American companies like P&G and allow us to manufacture and do business efficiently around the world are critical drivers of economic growth. TPA and the major trade agreements being negotiated by the U.S. are a significant step in the right direction. I urge Congress to take action now to move this important trade agenda forward by passing TPA.