Both presidential candidates disagree with the controversial Trans-Pacific Partnership (TPP) – but for different reasons.
Donald Trump wants to stop the deal, even if Congress passes it.
Hillary Clinton says she opposes the deal and she will continue to do so after the elections.
The Trans-Pacific Partnership aims to create a single market, much like the EU. The partnership will involve 11 countries: Vietnam, The United States, Peru, Chile, Canada, Brunei, Australia, Malaysia, Mexico, New Zealand and Singapore. It is an ambitious initiative to increase economic ties between these nations. It should also reduce some taxes or tariffs and even eliminate them in some cases.
A New Global Organization
If all goes as predicted, the agreement will promote an open-border policy and economic growth. The countries involved should also co-operate on customs, labor, intellectual rights and competitions policies.
The eleven countries that are currently negotiating their status are members of the Apec (Asia-Pacific Economic Co-operation). Together, they have a population of 650 million people. It is a huge market for many businesses.
These high-income countries are also rich in terms of the gross domestic product. The combined gross domestic product is over 20 trillion dollars.
The US will take the lead of the new organization, as it is the world’s largest economy and trading nation. It also regards the Asia-Pacific community as key to its growth in future.
While some believe that the US are trying to combat China’s growing influence in the region, others believe that the United States want to compete with the EU for a share of the global market.
The Apec countries have 40 percent of the world population and 44 percent of the global trade. The negotiations have started in 2010 and the end is nowhere in sight.
There have been 16 summits, on a host of issues. President Barack Obama has been lobbying hard to come up with a final form of the agreement.
There is growing criticism on both sides. The agriculture sector in Japan is concerned about the GMO policies, while a large group of American lawyers has expressed their concerns over the lack of public debate over the TPP and the extension of intellectual property rights.
The prices of drugs are also problematic to many, with the TPP issuing new regulations in the medical sector, which could lead to price increases for important medicines.
Although Donald Trump strongly opposed the TPP , Hillary Clinton has proven undecided about it. At the time she was serving under the Obama administration she showed support for the deal, but recently she declared that she opposes it and will continue to oppose it.
She made the declaration during a speech concerning economic issues in Michigan.
Congress also has powers to pass the TPP by itself. But a president opposing the deal could use one’s own ways of stopping the TPP from taking shape.
For the Trans-Pacific Partnership to happen, lawmakers should first consult the public opinion. And the controversial details should be explained in depth to the public.