1. P R E S E N T E D B Y : E D U A R D O M I L L E R
Trans-Pacific Partnership
2. Acronyms
TPP: the actual trade deal itself
TPA (Trade Promotion Authority): “fast track”
allowing Congress to vote yes or no without
amending the actual bill itself
TAA (Trade Adjustment Assistance): a list of
measures designed to help workers who lose their
jobs due to trade
3. What is “Free” Trade
Every country has put up barriers in a variety of
ways: quotas, tariffs, subsidies
The definition of free trade that of the tearing down
of such barriers thus allowing unlimited access to a
new market
4. Comparative Advantage
The economic principle that every country is
specialized in the production of certain goods
This is based on differing advantages in technology,
geography, education of the labor force, and size of
the labor force
e.g. Japan is great at producing cars, Vietnam at
textiles
5. TPP
a free trade agreement that encompasses 12 different
nations, along the Pacific Rim
Includes policy on intellectual property rights,
environmental & human rights law
Consists of 1/4th of world GDP
In negotiation for 10 years now
6.
7. Who Makes What
America: Airplanes, Pharmaceuticals, Technology
Japan: Cars, Electronics
Australia, Chile: Coal, Copper, etc.
Singapore: Export-Import, Finance
Brunei: Oil
Malaysia: Electronics, Natural Resources
Vietnam: Textiles, low skill manufacturing
Mexico: middle skill manufacturing
Peru: Minerals, Metals
New Zealand: Lord of the Rings, Milk, Flight of the
Conchords
8. Cons
Environmental issues
Human Rights (think sweatshops, immigration)
Loss of American jobs to poorer countries
Tariffs can foster domestic industry development
9. Pros
Cheaper and a wider variety of goods available
Make American exports more competitive abroad
All countries involved look to gain in their GDP
Larger market for producers (330 Million in USA, >800
million for TPP area)
Jobs that are export related tend to pay more than
domestic
10. Political Ramifications
Possible loss of sovereignty, deal could overshadow
American laws
Continues what is known as “economic liberalism”
which can be a good or bad thing depending on who
you are
Japan has never discussed a trade agreement with
the USA, why?
Pushes us further into the knowledge economy –
may increase income inequality
Tends to project us towards a more globalized world
(are we ready for this?)
11. My Thoughts
Free trade can have a two-pronged effect on the poor
1) It allows them access greater access to goods (the
reason why everyone owns an Iphone)
2) It takes away jobs from those that are uneducated
or poorly skilled
In my own opinion economic liberalism is inevitable,
our world is too interconnected that if we were to
backtrack we would hurt ourselves, and if we did
nothing we would see the rest of the world benefit at
our loss
12. James Wilson on British Corn laws
“They are, in fact, laws passed by the seller compel
the buyer to give him more for his article than it is
worth. They are laws enacted by the noble
shopkeepers who rule us, to compel the nation to
deal at their shop alone.”
Protectionism helps domestic corporations charge
you more
The idea that free trade hurts the few for the
betterment of the many
