Will You See More "Made In America" Nike Shoes In The Future?

Recently, President Obama went to Nike headquarters in Oregon for lobbying. In the face of 8500 employees of Nike headquarters, Obama once again expressed support for the "Trans-Pacific Partnership Agreement TPP".

In the future, we will see more "made in the United States".

Shoes?

The agreement is initiated by the New Zealand, Singapore, Chile and Brunei countries of the Asia Pacific Economic Cooperation Conference (gapec). Since 2002, a group of multilateral relations free trade associations have been brewed. Now there are 11 member countries, including Vietnam and Mexico.

The most important part of the agreement is tariff reduction, that is, 90% of the tariffs on member states are immediately waived.

The United States joined the TPP negotiations in 2013, but it failed to sign the agreement because of persistent opposition from the Congress.

The Obama administration hopes to formally pfer some of the manufacturing OEM posts back to the us through the formal signing of the TPP agreement. He promised that "this will not only create more skilled and highly paid job opportunities in the market, but also reduce product prices by reducing import tariffs on manufacturing industries."

"We support President Obama's implementation of this trade initiative."

Mark Parker, President and chief executive officer of Nike, said, "the signing of the TPP agreement means that the tariffs on imported footwear will be reduced. This will not only promote the business expansion of Nike products in innovation, but also further increase investment to promote the overall development of the US manufacturing industry".

With the support of Obama's political propaganda, Nike's fundamental starting point is to improve the price competitiveness of products.

Vietnam and Mexico are the main foundry countries of Nike, employing millions of contract workers locally.

According to Nike's 2014 earnings report, the company currently has 150 shoe factories in 14 countries. Among them, several countries with a large share of production share are Vietnam 43%, China 28% and Indonesia 25%.

The United States imports an average of 10% tariffs on imported shoes and products, and eventually these taxes and labor costs will be pferred to the price of products.

If the cost of this part is reduced by signing TPP, it will increase Nike's pricing flexibility.

But not all sports.

They are on the same line with Nike.

New Balance, the US sports brand based in Boston, opposes the signing of TPP.

New Balance is one of the few footwear brands that retain production business in the US. If competitors Nike get bigger pricing space, for New Balance, the competition between the two companies will be more intense.

It is also announced that once the TPP agreement is formally finalized, Nike will accelerate the development of high-end innovative footwear manufacturing methods, with more than 10 thousand jobs coming.

In the next ten years, this advanced manufacturing model is expected to create more employment opportunities in the United States, including thousands of manufacturing and engineering jobs, as well as up to 40 thousand supply chain service jobs.