Francisco A. Laguna & Amy Turner
The Trans Pacific Partnership (TPP) faces significant opposition from the remaining Democratic and Republican 2016 presidential candidates. The TPP has increasingly become a talking point in the presidential campaign. Hillary Clinton, Bernie Sanders and Donald Trump all oppose the deal. This week, we continue our series on the TPP, focusing on the comments of presidential candidate, Bernie Sanders, on whether the trade agreement benefits the United States. The information provided in the post is not meant to be political in nature, or an endorsement or critique of the position of Senator Sanders.
According to Senator Sanders’s website, the TPP is a “disastrous trade agreement designed to protect the interests of the largest multi-national corporations at the expense of workers, consumers, the environment and the foundations of American democracy.” Sanders asserts that under existing free trade treaties, American workers have been forced to compete against low-wage labor from around the world. This has resulted in the closing of thousands of factories and massive job losses in the United States. Sanders claims that TPP is “part of a global race to the bottom to boost the profits of large corporations and Wall Street by outsourcing jobs; undercutting worker rights; dismantling labor, environmental, health, food safety and financial laws; and allowing corporations to challenge our laws in international tribunals rather than our own court system.”
Sanders states that the TPP “has been written behind closed doors by the corporate world.” He claims that Wall Street, the pharmaceutical industry and major media companies have full knowledge as to what is in the treaty, but the American people and members of Congress do not.
Sanders has outlined 10 Ways the TPP would hurt working families
1. TPP will allow corporations to outsource even more jobs overseas
The US will lose more than 130,000 jobs to Vietnam and Japan, based on an assessment by the Economic Policy Institute. Service sector jobs will be affected. Corporations have already outsourced over 3 million service sector jobs from the US. The TPP allows corporations to more easily outsource call centers, computer programming, engineering, accounting and medical diagnostic jobs. In addition, manufacturing jobs will be lost. The TPP reduces the risks associated with operating in low-wage countries.
2. Sovereignty will be undermined by giving corporations the right to challenge our laws before international tribunals
The TPP establishes a process that gives corporations the right to challenge domestic laws before the United Nations and World Bank that could adversely impact their “expected future profits”. These could allow corporations to be compensated by taxpayers. This process bypasses laws dealing with labor, health, and environment, therefore weakening American sovereignty.
3. Wages, benefits, and collective bargaining will be threatened
Sanders’s website states: “The TPP will force American workers to compete with desperate workers in Vietnam where the minimum wage is just 56 cents an hour.”
4. Our ability to protect the environment will be undermined
Under the TPP, corporations are allowed to challenge laws that would “adversely impact their future profits”. Any nation that becomes a party to the TPP can be sued by corporations. The TPP bypasses domestic courts by allowing corporations to sue directly any nation that signs the agreement in an international tribunal.
5. Food Safety Standards will be threatened
Only 1-2 percent of food imports is inspected. The TPP will greatly expand these imports, thereby further overwhelming the system. This would make it easier for countries to export contaminated foods into the US, including fish and seafood.
6. Buy America laws could come to an end
Under the TPP, although there are laws that require the US government agencies to buy goods and services made in America, foreign corporations would be given equal access to compete for government contracts with companies that make products in America. The US would not be allowed to prevent companies that have bad human rights records from being awarded government contracts paid by US taxpayers.
7. Prescription drug prices will increase, access to life saving drugs will decrease, and the profits of drug companies will go up
Pharmaceutical companies are lobbying to assure that the TPP recognize extensions of their patents (which currently exists 20 years or more). This would expand the profits of big drug companies.
8. Wall Street would benefit at the expense of everyone else
The TPP would impose restrictions on governments from imposing “capital controls”. Governments would be barred from creating controls that include financial speculation taxes to curbing massive flows of speculative capital flowing into and out of countries.
9. TPP would reward authoritarian regimes that systematically violate human rights
Authoritarian regimes would be granted duty free access to the U.S. market under the TPP.
10. The TPP has no expiration date, making it virtually impossible to repeal
There is no sunset provision in the TPP. After it is signed into agreement, a consensus of all member countries is required to amend it. Other countries, like China, could be allowed to join in the future.
Senator Sanders is clearly opposed to the TPP.
Call TransLegal with your questions concerning the TPP or trade agreements in general.