The Trans-Pacific Partnership (TPP) agreement between the US and eleven other Pacific Rim countries was under negotiation for the first seven years of the Obama presidency. For the first four years, Hilary Clinton was the Secretary of State, directly supervising the negotiations. Even after she quit her cabinet position to launch for her second presidential bid, she continued to tout it in superlative terms.
Yet, by early 2016, most presidential aspirants, including Mrs. Clinton, had disowned the TPP. No new information about the TPP had come to light to prompt this volte face. Nor had the then new Secretary of State John Kerry added anything radically new to the proposals she was associated with during her tenure.
While largely in the interests of corporate America, the TPP is not in the interests of the US economy or the public at large. While it is in the interest of US transnational corporations (TNCs) to source manufactures and services from low-wage Asian economies for the US market, by doing so, they are likely to displace those previously producing those goods, increasing US unemployment. This, in turn, reduces aggregate demand and increases the current account deficit in the US balance of payments.
US Corporate Interests
The TPP will promote US corporate interests by institutionalizing new arrangements which undermine the sovereignty of TPP countries, including the US itself. For instance, the TPPA’s patent and copyright provisions are stronger and for longer durations. This would strengthen corporate monopolies, especially of US TNCs, raising the prices of goods, especially pharmaceutical drugs, in all TPP countries. Thus, while US TNCs stand to profit greatly, consumers in all TPP countries, including the US, would be worse off.
Read the entire article