How Politics May Sink Trade Deals

By www.ForexConspiracyReport.com
How Politics May Sink Trade
Deals

http://www.forexconspiracyreport.com/how-politics-may-sink-trade-deals/
Two major trade agreements are in
the works. They are the Transatlantic
Trade and Investment Partnership
(TTIP) between the European Union
and the USA

And the Transpacific Partnership
(TPP) that would include Australia,
Canada, Japan, Malaysia, Mexico,
Peru, the USA, Vietnam, Chile,
Brunei, Singapore and New Zealand.

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According to the Transpacific
Partnership web page of the US
Trade Representative:

The Trans-Pacific Partnership (TPP)
writes the rules for global trade-rules
that will help increase Made-in-
America exports, grow the American
economy, support well-paying
American jobs, and strengthen the
American middle class.

According to the Transatlantic Trade
and Investment Partnership page of
the US Trade Representative:

The Transatlantic Trade and
Investment Partnership (T-TIP) is an
ambitious, comprehensive, and high-
standard trade and investment
agreement being negotiated between
the United States and the European
Union (EU).

T-TIP will help unlock opportunity for
American families, workers,
businesses, farmers and ranchers
through increased access to
European markets for Made-in-
America goods and services.

This will help to promote U.S.
international competitiveness, jobs
and growth.

Both of these trade deals would be
good for the USA.

They would create jobs in the USA,
protect copyrights and patents and
open foreign markets to US
companies.

However, there is a lot of opposition to
these deals during the 2016 election
year, especially by presidential
candidates Sanders and Trump.

This article is about how politics may
sink trade deals.

Bloomberg writes about the actions of
Trump and Sanders are having the
effect of shifting the mood of
congress against trade deals.

Congress has embraced free trade for
two generations, but the protectionist
bent of the 2016 election campaign
may mark the end of that era.

The first casualty may be the 12-
nation Trans-Pacific Partnership,
which was already facing a skeptical
Congress.

A European trade pact in the works
may also be in trouble.

Lawmakers from both parties are
taking lessons from the insurgent
campaigns of Donald Trump and
Bernie Sanders, which have
harnessed a wave of discontent on job
losses by linking them to free-trade
deals.

Even Hillary Clinton has stepped up
criticism of the pacts.

There are many good reasons for the
Pacific and Atlantic trade deals but
when the voting public is constantly
told that trade deals equal lost jobs
politics may sink trade deals in the
works and even endanger current
trade deals like NAFTA.

How Did NAFTA Work Out?

If you Google NAFTA you will see
many claims that NAFTA resulted in
nearly a million lost jobs in the USA.

But when you pick non-partisan
reports the picture is different.

Politifact.com takes Senator Sanders
to task regarding NAFTA job losses.

Here are some of the opinions of
researchers without a political ax to
grind.

“NAFTA did not cause the huge job
losses feared by the critics or the
large economic gains predicted by
supporters,” the report said.

“The net overall effect of NAFTA on
the U.S. economy appears to have
been relatively modest.”

“The net employment effects were
relatively small, although there were
adjustments across sectors displacing
workers,” the report said.

In other words, jobs in certain
industries, such as cars and
electronics, might have suffered, but
overall, the job impact was nominal.

If an industry exported more at a
higher real price, then that was a win,
or to use their terms, a positive impact
on welfare.

By that yardstick, NAFTA produced
more gains for Mexico than the United
States, but both countries were
slightly better off.

How politics may sink trade deals is
by lumping together job loss in the
USA, anger at China for its high trade
surplus and misinformation about
current trade deals of trade deals that
would likely protect American interests
in the future.

How Politics May Sink Trade Deals

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