Trans-Pacific Partnership Could be in Trouble
The Democrats and Republicans are taking different positions on the Trans-Pacific Partnership trade deal, even as both parties’ candidates oppose the TPP in its present form.
The Democrat’s platform reflects Hillary Clinton’s newfound TPP opposition, calling for “strong and enforceable” labor and environmental standards in any trade deal, including the TPP.
But on the GOP side, Donald Trump’s TPP opposition is not apparent in his party’s platform that says a Republican President will “complete negotiations” for TPP and backs a future multilateral deal for a so-called “Reagan economic zone” of free and fair trade.
The question is if “negotiations” in the GOP platform implies re-negotiation or “ratification,” since TPP negotiations were completed and the deal signed in February after seven years of talks.
All 12 TPP partners must sign the trade agreement for it to take effect and Japan’s government says it’s not interested in re-working the delicately-balanced deal as it presses its legislature to ratify TPP this fall.
U.S. Trade Ambassador Michael Froman says it would be a mistake to walk away from a trade deal that covers 40-percent of the world’s economy…
“The American Farm Bureau says it’s going to add a net farm income of $4.4 billion, it’s a great opportunity. But, if we fail to move forward or we delay it, then it’s not only that lost opportunity but it’s actually losing market share in the region, or facing barriers to our exports that aren’t based on science, or evidence.”
Froman explains the economic impact TPP will have…
“The Peterson Institute estimates that a one year delay would cost the US economy $94 billion, that’s a $700 tax on every American household. So, we have a choice here, or congress has a choice, of either getting 18,000 tax cuts, increasing exports by $350 billion a year, increasing US GDP by over $130 billion a year, increasing net income, farm income of $4.4 billion a year, or imposing a $700 tax on every American family.”
President Obama ignored many in his party and organized labor to push for a conclusion on the TPP. Hillary Clinton, as Secretary of State, praised TPP. However, now her and Trump oppose the deal in its current form.