US unions, lawmakers vow scrutiny of TPP

The New Zealand government Friday welcomed U.S. President Barack Obama’s announcement of a 90-day notice to Congress before he can sign the Trans-Pacific Partnership (TPP) trade deal.

Froman said a separate declaration by TPP partners not to manipulate exchange rates was the first to tie currency rules to a trade pact and was “extremely meaningful”, even if it falls short of the sanctions that United States unions, auto makers such as Ford Motor Co and a few lawmakers demanded for countries that deliberately weaken their currencies to make exports cheaper.

The president of UAW local 974 is anxious about the Trans-Pacific Partnership. “Farm exports provide jobs in rural areas, of course, but also lead to jobs at warehouses, ports, trucking companies and other urban businesses that move farm goods to customers around the world”.

ISDS was left out of the Howard-era USA free-trade agreement, but it has made its way into the TPP.

The 6000-page legal text of the agreement was released late last night, and critics say it won’t mean much to most people because of its complexity. That deal, among the United States, Mexico and Canada, failed to deliver the big job gains its supporters predicted and was blamed by critics for wiping out many USA factory jobs.

“According to the official, the review will be checking if the agreement takes away or prohibits tariff and non-tariff barriers to communication technology, information and other services”.

Before the release of the text, House Ways and Means Committee Ranking Member Sander Levin said, “The upcoming 90-day period was established to facilitate an intensive and informed debate over the merits of TPP as negotiated, as well as the necessity for any modifications to the agreement, before the agreement is signed”.

Trade Representative Michael Froman echoed that in a statement, saying “I would also encourage everyone to take a moment to consider the costs of not moving forward with this agreement”. When combined, these countries account for about 40 percent of global economic output.

They said promised protections for labor rights and the environment, and assurances that drug patent protections would not block the poor’s access to vital medicines, were weak in the final text.

Among the political complications for Obama is that Democratic presidential front-runner Hillary Clinton already has said she’s against it. The TPP is notable for including both the USA and Japan – and excluding China.

A White House spokesman highlighted Obama’s strong desire to push TPP into law and explained that the president personally called and visited members of Congress about the issue.

Advertisement

RCEP, which would comprise the 10-nation Association of South East Asian Nations plus China, India, Japan, South Korea, Australia and New Zealand, is a Beijing-backed trade framework that has gained prominence as an alternative to USA plans.