What the TPP means for one California auto parts maker

A variety of companies– from software makers to auto parts makers - are trying to make sense of the Trans-Pacific Partnership, the sweeping trade deal 12 countries including the United States agreed to Monday in Atlanta.

The full text of the agreement will not be made public for about a month. but one Southern California auto parts supplier is cautiously optimistic about the deal.

"From what we know, we see this as a positive treaty for our industry,” said Steve Hughes, a Vice-President at Centric Parts and StopTech, which specialize in making and distributing aftermarket breaks.

"If you drive a Toyota Corona and you take your car to a break shop, there's a good chance you're going to get our breaks put in your car," said Hughes.

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Since the exact text of the TPP is still classified, Hughes says he can't make a final judgement yet.

“We don’t know yet what the final treaty is going to be," he said.

However, he likes what he sees so far; the U.S. Trade Representative has released some broad outlines of the deal.

"TPP presents a significant growth opportunity for U.S. auto exports. Historically, U.S. auto exporters have faced a broad range of formidable barriers to export in TPP countries, particularly in Japan," a document from the trade office says. "TPP addresses these barriers."

Specifically, the TPP eliminates tariffs, which are as high as 30 percent in Malaysia and 70 percent in Vietnam, according to the trade office.

“It’s going to expand our ability to sell into these countries,” said Hughes.

The United Autoworkers Union was less pleased with this week’s agreement, because they fear the TPP will lead companies to export more of their jobs overseas.

"Time and time again companies who game the system shift more and more work to low wage countries,"  UAW President Dennis Williams said in a written statement. "The administration should return to the table to ensure we have an agreement that strengthens American families and creates economic stability."

When it comes to the auto industry, California isn’t Michigan, but still, about 22,000 people in the Golden State work for auto parts suppliers, according to the Motor & Equipment Manufacturers Association.