This comes from our export businesses having better access to 800 million customers in 11 countries across the Asia-Pacific.
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The nations agreeing to the final deal announced in Atlanta include the USA, Canada Mexico, Japan, Australia, Brunei Darussalam, Chile, Malaysia, New Zealand, Peru, Singapore and Vietnam. Together, the countries account for 40 percent of world economic output.
“We are committed to working with Congress within the framework of the recently-passed Trade Promotion Authority to obtain a strong bipartisan understanding of and support for this historic trade deal that benefits farmers, ranchers, and all those who live, work and raise families in rural communities”.
For President Barack Obama, the trade deal is a major victory on a centerpiece of his global agenda.
What we cant do is think that somehow if we draw a moat around this country that were going to be able to avoid globalization and technology, because frankly when you look at job loss and lost leverage, automation and technology has probably contributed more than trade has to that problem, Obama said in the Marketplace interview.
Consumer group CHOICE called for independent assessment of the TPP’s real benefits following scrutiny of the actual text. The deal promises to demolish tariffs that hindered American manufacturers and agriculture from trading in the Asian-Pacific region that had artificially driven up the prices of US goods.
This agreement makes us more competitive by eliminating about 18,000 taxes, tariffs that are placed on America’s products in these other countries.
“Agreement on a TPP is a positive and important signal to world trade”.
In June, President Obama had to collaborate with Republicans to keep his goal of signing a Pacific trade deal alive, a situation that exposed the leftward shift of the Democratic Party on issues of economic policy.
As a result, a vote on the TPP likely will not happen until well into 2016, where it is likely to get ensnarled in the politics of a presidential election year. It can’t amend the agreement.
About 44 percent of USA exports flow to the other members of the pact. Ohio Senator Rob Portman, a former US trade representative, criticized a lack of “teeth” in preventing countries from devaluing their currencies to make their exports cheaper.
Another key source of controversy stemmed from drug companies’ efforts to protect their patents.
Osamu Nagayama, chairman and chief executive of Japan’s Chugai Pharmaceutical Co Ltd (4519.T), which sells such drugs in the United States through Switzerland’s Roche (ROG.VX), was grateful that the settlement didn’t drop below eight years as the protection period. They have also agreed to consult openly on proposals for technical regulations that must be followed by importers, exporters and local producers.
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The government does not have to hurry to decide on the TPP as it will take a while for the deal to go into effect.
