The TPP
has been many years in the making, and I only recently learned what the
acronym stood for. I'll be honest, I still think it stands for Toilet
Paper Party, in the back of my mind. Unfortunately (fortunately?) the
TPP is not a super fun party where everyone wears dresses made out of
toilet paper, but an international trade agreement know as the
Trans-Pacific Partnership, and after five years of negotiations, it's finally ready to be voted on.
The Trans-Pacific
Partnership is just what it sounds like (sort of). It's a trade
agreement between the United States and eleven nations of the Pacific
Rim that's been called the most ambitious trade deal since NAFTA. It
involves 40% of the world's economy over twelve countries, Australia,
Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand,
Peru, Singapore, Vietnam and, of course, the United States.
The
TPP (no, not the Tall People parade) eliminates tariffs on United
States goods entering countries that are part of the agreement.
Currently, countries that are part of TPP face high tariffs, which is an
international trade word for taxes, on certain American goods, like auto parts. The administration's thinking is that the elimination of
tariffs in certain industries, like manufacturing and food, will allow
U.S. goods to be more competitive on the global market. The TPP also
includes provisions that require countries to commit to worker's rights
and protect the environment. On the whole, the agreement serves to
eliminate or lower barriers to trade between the twelve nations involved
in the deal.
The TPP (not to be confused with Talented Platypus
Puppets), notably, does not include China, though there is a hope that
with enough countries involved in TPP, and the sizable benefits of free
trade that participating countries receive, China will have significant encouragement to change their practices and sign onto the treaty.
Before
this thrilling international tax law can go into place, it must be accepted in all countries, which is not guaranteed. Many lawmakers
(lots of them Democrats) in the United States are not happy with the
agreement, fearing that it is a threat to American jobs. While this
is the first ever trade agreement the United States has signed with
labor protections for workers overseas, American workers still fear that it will eliminate jobs here. Another criticism of the treaty is
that large parts of it were negotiated in secret, and the benefits to big corporations outweigh the benefits to workers around the world.
President Obama faces an uphill battle with Congress, as key members of
his own party have spoken out against the deal.
If all this
sounds familiar, it's likely because you were alive during the creation
of NAFTA. President Clinton created the North American Free Trade
Agreement in 1993, winning barely enough Democrats over to secure passage of the bill. The AFL-CIO claims that 700,000 jobs were lost due to NAFTA, a number that will potentially increase with the passage
of TPP (a different entity entirely than the Totally Plastered Pandas). However, because President Obama passed a "fast-track" bill earlier
this summer, the bill's passage is slightly more secure. Congress
cannot offer amendments of any kind, which will allow the bill to be
presented on a straight up-or-down vote, making this a difficult choice
for Representatives who want to both safeguard American jobs, and increase trade around the world. While the future of the TPP (not
the same as the Tangerine Port Provision) isn't yet secure, it's never
too early for President Obama to start implementing my many other ideas
that start with TPP, all sprinkled throughout this blog post. Your move,
Barack.
