TPP: Blessing for corporate US, drawback for others?

Reading Time: 3 minutes
TPP-Protest-Thailand
Protests in Thailand against the Trans-Pacific Partnership

The Trans-Pacific Partnership (TPP) is a free trade agreement first proposed by New Zealand, Singapore, Chile and Brunei in May 2006, and has since ballooned to include Australia, Malaysia, Peru, Vietnam and the US. The TPP is little known, but its plan to liberalise the lesser developed countries in East Asia, the most significant since the passing of the North American Free Trade Agreement (NAFTA) in 1994, has the potential to create large and disruptive effects in turns of economic and foreign ties.

By Benjamin Soohoo

There is no doubt that China is the one country the world has been watching closely, from its jaw-dropping economic growth to its questionable human rights violations. There is also no doubt that China has come a long way since its Communist reign. China as an economy has grown substantially over the last couple of decades. It’s GDP has grown at least 10 per cent every year for the last 20 years. It has the largest population of any country. It will soon overtake the US as the largest economy in the world (but not in terms of income per capita, an important distinction).

Tech companies already see China’s potential as a source of consumption. Tim Cook, CEO of Apple Inc., believes that China will eventually be the number one market for Apple phone and tablets.

China’s economy is closely intertwined with that of the US, for better or worse, and while China’s social issues on human rights and communist ideology regularly clash with the democratic ideology of the West, it appears that, at least for the foreseeable future, the US has no choice but to grudgingly let the country be.

That could all change with the passing of the Trans-Pacific Partnership. This agreement, shrouded in mystery behind the closed doors of Congress, would serve as a catalyst for the development of Southeast Asian countries, which could potentially usurp the US’s overreliance on Chinese imports and simulate the economies of Asia-Pacific when the US increases its import volume from them.

Potential for damage

While this all sounds great on paper, there is potential for damage. China feels nervous of the impending deal, as they see this as the US’s attempt to contain the rise of China’s economy. The passing of the TPP would hurt US-China relations, already hammered by deep differences in social ideology. Critics of the bill see this as another attempt of big business to benefit disproportionally, most notably disaffecting the so-called “99 per cent.” Opening on free trade with these other countries in the East could lead to more outsourcing of jobs, both low and high skill.

The bill is not open to the public, but what has been leaked from the bill is cause for concern, to say the least. Internet activist watchdogs view the strict intellectual property rules of the TPP as yet another threat to internet freedom, surprisingly, since the bill contains some of the DNA of the Anti-Counterfeiting Trade Agreement.

President Obama has said that he would have no leverage in terms of getting any kind of free trade agreement past Congress until after his re-election. Now that he has officially been sworn in for a second term, the passing of the bill may not be too far off.

 

Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid

Reading Time: 3 minutes

Protests in Thailand against the Trans-Pacific Partnership

The Trans-Pacific Partnership (TPP) is a free trade agreement first proposed by New Zealand, Singapore, Chile and Brunei in May 2006, and has since ballooned to include Australia, Malaysia, Peru, Vietnam and the US. The TPP is little known, but its plan to liberalise the lesser developed countries in East Asia, the most significant since the passing of the North American Free Trade Agreement (NAFTA) in 1994, has the potential to create large and disruptive effects in turns of economic and foreign ties.

Reading Time: 3 minutes

TPP-Protest-Thailand
Protests in Thailand against the Trans-Pacific Partnership

The Trans-Pacific Partnership (TPP) is a free trade agreement first proposed by New Zealand, Singapore, Chile and Brunei in May 2006, and has since ballooned to include Australia, Malaysia, Peru, Vietnam and the US. The TPP is little known, but its plan to liberalise the lesser developed countries in East Asia, the most significant since the passing of the North American Free Trade Agreement (NAFTA) in 1994, has the potential to create large and disruptive effects in turns of economic and foreign ties.

By Benjamin Soohoo

There is no doubt that China is the one country the world has been watching closely, from its jaw-dropping economic growth to its questionable human rights violations. There is also no doubt that China has come a long way since its Communist reign. China as an economy has grown substantially over the last couple of decades. It’s GDP has grown at least 10 per cent every year for the last 20 years. It has the largest population of any country. It will soon overtake the US as the largest economy in the world (but not in terms of income per capita, an important distinction).

Tech companies already see China’s potential as a source of consumption. Tim Cook, CEO of Apple Inc., believes that China will eventually be the number one market for Apple phone and tablets.

China’s economy is closely intertwined with that of the US, for better or worse, and while China’s social issues on human rights and communist ideology regularly clash with the democratic ideology of the West, it appears that, at least for the foreseeable future, the US has no choice but to grudgingly let the country be.

That could all change with the passing of the Trans-Pacific Partnership. This agreement, shrouded in mystery behind the closed doors of Congress, would serve as a catalyst for the development of Southeast Asian countries, which could potentially usurp the US’s overreliance on Chinese imports and simulate the economies of Asia-Pacific when the US increases its import volume from them.

Potential for damage

While this all sounds great on paper, there is potential for damage. China feels nervous of the impending deal, as they see this as the US’s attempt to contain the rise of China’s economy. The passing of the TPP would hurt US-China relations, already hammered by deep differences in social ideology. Critics of the bill see this as another attempt of big business to benefit disproportionally, most notably disaffecting the so-called “99 per cent.” Opening on free trade with these other countries in the East could lead to more outsourcing of jobs, both low and high skill.

The bill is not open to the public, but what has been leaked from the bill is cause for concern, to say the least. Internet activist watchdogs view the strict intellectual property rules of the TPP as yet another threat to internet freedom, surprisingly, since the bill contains some of the DNA of the Anti-Counterfeiting Trade Agreement.

President Obama has said that he would have no leverage in terms of getting any kind of free trade agreement past Congress until after his re-election. Now that he has officially been sworn in for a second term, the passing of the bill may not be too far off.

 

Do you like this post?
  • Fascinated
  • Happy
  • Sad
  • Angry
  • Bored
  • Afraid