Why progressives should rescue the TPP trade deal [View all]

[YoungDemCA]

Good article on the TPP by Emily J. Blanchard, Associate Professor at Dartmouth College. The last point about how China will write the rules of global trade if the US fails to lead on this issue is especially important to graps for anyone who gives a damn about labor rights - or human rights in general.

Progressives, however, are making a mistake in rejecting the 12-country trade accord. As an economist who specializes in trade and trade agreements – and as a progressive who believes in the importance of environmental protection, workers' rights and shared prosperity – I believe the TPP presents a rare opportunity to rewrite key rules on global trade for the better.

The TPP is less about tariffs and more about creating a coherent global code of conduct for how firms do business in the world. Done right, the agreement would bring important new policy priorities to the negotiating table. It would be a shame to let this chance pass us by.

There is no doubt that by cutting tariffs, the TPP will cost some jobs, even as it creates others. And in relatively wealthy countries like the U.S., the burden of job losses will likely be borne disproportionately by those workers already struggling from earlier waves of import competition and technological change.

But continuing mechanization and inevitable changes in what America is best at making will cause far more job displacement than proposed tariff cuts ever could, especially from the U.S.’ already very low tariff rates. Refusing to sign the TPP won’t stop these ongoing and seismic shifts in the global workforce. Serious pro-worker policy proposals needs to begin by acknowledging this truth.

The agreement is not perfect – intellectual property rules are unarguably a compromise, and disciplines on rule-breaking behavior by firms or governments could be stronger – but we need to be pragmatic.

Renegotiating the agreement – which took seven years to hammer out – is simply too risky. There is a very real prospect that our trading partners would refuse. And if the TPP fails, there is every reason to expect that China would write the rules instead, with a far less progressive agenda.

http://theconversation.com/why-progressives-should-rescue-the-tpp-trade-deal-60304

Disclosure statement:

Emily J. Blanchard does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond the academic appointment above.