Every now and then I like to try to catch up with the arcane topic of trade agreements (see last week’s post). Today, I’ll deal with the other one still in play, the Trans Pacific Partnership (TPP). The U.S. Trade Representative’s Office states the administration’s position on the TPP. Ballotpedia.org has a helpful summary of where we are on it.
For this one, should you be at all interested, the full text of the TPP is available online. Like all trade agreements in which the U.S. participates, the TPP is about reducing and eliminating tariffs. In principle, this is supposed to foster competition and create business opportunities and, as the Trade Representative’s Office says, “leveling the playing field for American workers & American businesses.”
The TPP was signed by the U.S. and the 11 other participating countries in February. But for us to participate in it, Congress has to ratify the agreement. It has not yet done so, not least because the TPP is caught up in election-year politics.
Contributing to slow approval is the weak endorsement of the International Trade Commission, which was required to report on the agreement’s economic effects. Its conclusion: TPP would improve the economy by 2032 (the target year, apparently)—but by less than 1%. The report gives examples of the increased percentage over baseline in 2032:
Annual real income: $57.3 billion (0.23 %)
Real GDP: $42.7 billion (0…