How 5 California Industries Could Fare Under New Pacific Trade Deal

Twelve Pacific Rim countries including the United States agreed Monday morning to a sweeping trade agreement that would eliminate thousands of tariffs and establish new trade standards.

The Trans-Pacific Partnership (TPP) still has to be approved by Congress in what is likely to be a contentious election year fight.

The agreement is not expected to be made public for another month, so many industry groups remain on the fence about whether the agreement is good or bad.

KPCC takes a look at five industries in California, and how they might be affected by the landmark pact: clothing, rice, dairy, the ports and entertainment.

Clothing

This summer, Ilsa Metchek, head of the California Fashion Association, predicted that the TPP would invariably lead to cuts in the California apparel industry.

But when reached Monday, Metchek was more optimistic, because it appears that the agreement now includes a so-called "yarn-forward" provision that has long been part of the North American Free Trade Agreement (NAFTA). In order for a company to qualify for "duty-free" status and pay no tariffs, they must use only fabric produced from material made by a TPP country.

"If yarn-forward means that a country like Indonesia must buy their cotton from the United States or from another TPP country, it's fine," Metchek said Monday. "It's the same thing we have with NAFTA."

In a report published last year, the non-partisan Congressional Research Service warned the TPP could increase competition for Western manufacturers and reduce demand for U.S. textile exports because Asian apparel producers could export clothing to the United States duty-free.

Read about potential impacts to the other 4 industries via KPCC