5 reasons why the TPP generates fear in America
The largest free trade agreement in history is about to materialize despite criticism; broad economic sectors than a dozen countries will be affected with approval.
HONG KONG - After years of painful and exhausting meetings, negotiators are preparing for what could be the last round of talks on the agreement in history largest free trade: the Trans-Pacific Partnership.
However, many groups are trying to sabotage it. Here are five reasons why almost everyone hates the Trans-Pacific Partnership (TPP, for its acronym in English), at least in America.
1. The free trade agreements are political kryptonite
It's no secret free trade agreements are difficult to pass in Congress. TPP's predecessor, the North American Free Trade Agreement (NAFTA) came into force in 1994. Two decades later, remains a political flash point. Supporters say the agreement has helped countless small and medium enterprises, while opponents say has caused thousands of American jobs are shipped overseas.
This time, opponents are concerned about the same problems; only on a larger scale. The TPP would link a dozen countries-Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, United States and Vietnam covering 40% of global GDP.
Despite the controversy, this is an agreement that US President Barack Obama wants to sign before leaving office.
2. Protection for workers
The White House and Republicans say that the TPP will provide millions of people worldwide buy American-made products, which should create jobs.
But Democrats and unions say the FTA has not benefited the workers, and that this would tempt companies to move their jobs overseas.
"This agreement would force Americans to compete against workers from countries like Vietnam, where the minimum wage is $ 2.75 a day," they wrote the Democrats George Miller, Rosa DeLauro and Louise Slaughter in an opinion piece last year.
"It threatens to reverse the financial regulation, environmental standards and laws that protect the safety of the medicines we take, the food we eat and the toys we give our children."
3. Nobody knows including
The current draft of the project is classified. Only members of Congress and employees with security clearance can see it and can not make copies even take their own notes about the agreement with him.
This is not unusual for trade negotiations: It is understandable that leaders of countries do not want to leak the details before the final agreement is reached. Even the United States has said that the agreement was made public after it is finalized.
But the obvious problem is that nobody knows what it includes; and is a historic agreement that can affect a wide swath of industries, economies and workers.
Although parties have been leaked by Wikileaks, a Web site that publishes whistleblowing a variety of sources anonymously, secret information, that was not enough to paint the big picture.
Moreover, it is not exactly bedtime reading.
4. The United States is not the only country with complicated policy
The TPP negotiations have dragged on for years. A big reason for the delay is that the negotiators of each country are grappling with complex policies at home.
Japan, for example, has been in a stalemate with the US on this agreement. Automakers and Japanese farmers have protested against the TPP: they are worried about losing their businesses once cheap US imports flooded Japan.
In Australia, opponents say consumers could be forced to pay more for prescription drugs because of provisions that could allow drug companies to extend their patents, preventing cheaper generics become available.
5. China will not have a seat at the table
For the US, the TPP is really China.
The world's second largest economy is not involved in the TPP, and if it becomes a reality, the agreement would be a valuable check against Beijing's influence in the Pacific. In essence, the United States would be establishing trade rules across large tracts of Asia, not China.
Late last year, China hinted that could be interested in joining at some point. The Deputy Finance Minister Zhu Guangyao said last October that the TPP would be "incomplete" without China, and as the country "becomes more open, it is very important for us to be integrated into the system of global trade with high level".
However, China is not involved in the current talks. Instead, Beijing is working directly its own commercial agreements with foreign governments. It has already signed 14 free trade agreements with countries such as Australia, Switzerland, Peru, Chile and Pakistan, and there are more coming.
