The pros and cons of the Trans-Pacific Trade Pact

DURING the first week of October, the United States concluded the Trans-Pacific Partnership Trade (TPP) agreement with 11 Pacific Rim countries, including Canada, Peru, and Japan. The pact could set trading rules for a large part of the world, accounting for 40 percent of the global economy. If it is carried out correctly, this agreement could tie these countries together, bolster their economies, and help raise labor and environmental standards in the region. Environmentalists are for it because under the TPP provisions, countries would be required to enforce laws to protect wildlife and diminish illegal trade in plants and animals. US allies consider the TPP deal a victory. Japan’s Prime Minister Shinzo Abe hailed the accord, saying that “the curtain is finally rising for a new Asian century.”

Since 2011 when President Obama told the Australian Parliament that the United States would play a larger and long-term role in shaping the Asian region, allies have been waiting for results. But for awhile, when conflicts in the West focused America’s attention, the much-awaited “pivot to Asia” seemed to be mostly words. But the TPP agreement has changed that equation. As President Obama’s Secretary of State, Hillary Clinton carried out the president’s agenda, including the TPP trade agreement. But since mounting her own 2016 presidential bid, she has split with the White House on several key issues. When she announced her opposition to the historic trade accord that Washington had sealed with 11 other Pacific Rim countries, she said, “I don’t believe that it’s going to meet the high bar I have set for bolstering the global economy.”

Vice President Joseph Biden, who will also be running for president in 2016, said he supports the trade deal and would help Mr. Obama get it passed in Congress.

In its assessment of the TPP agreement, Fitch Ratings reported that while the TPP would likely be positive for those within the pact, it might divert trade and investment from non member countries in the Asia Pacific Region, such as China, Thailand, Korea, Indonesia, and the Philippines.