A New Report From The US International Trade Commission
Shows The TPP Is Not Worth Passing
Yesterday, the U.S. International Trade Commission (ITC) released their findings on the Trans-Pacific Partnership (TPP). To nobody’s surprise the results are not good.
The TPP would not deliver the economic benefits promised by the U.S. Trade Representative. Instead, the report shows that the deal would be disastrous, increasing the U.S. trade deficit by over $21 billion per year and harming employment in key industries.
Basically they found that miniscule gains would be made in most of the sectors of the economy. By miniscule I mean that after 15 years the TPP would increase our GDP by a whopping 0.15%.
Most alarmingly, the ITC report projects that the TPP would increase the U.S. trade deficit in both manufacturing and the services sector. According to the report, once fully implemented, the TPP would decrease manufacturing output by over $11 billion per year and would decrease U.S. employment in manufacturing by 0.2%. The report also highlights concerns that the TPP would put call center jobs at particular risk of being offshored.
The weak economic projections in the ITC report are especially notable given that ITC’s track record is one of being overly optimistic about the effects of free trade deals on American workers and our economy.
These results are not surprising to many of the labor groups who have been against this multi-national trade agreement since it was announced.
“This ITC report is so damaging that any reasonable observer would have to wonder why the Administration or Congress would spend even one more day trying to turn this disastrous proposal into a reality,” said Richard Trumka, President of the AFL-CIO. “Even though it’s based on unrealistic assumptions, the report could not even produce a positive result for U.S. manufacturing and U.S. workers.”
“One of many shockers is just how meager the purported benefits of the TPP are. A mere .15% of GDP growth over 15 years is laughably small—especially in comparison to what we’re being asked to give up in exchange for locking in a bonanza of rights and privileges for global corporations,” added Trumka.
“Even though the report fails to account for currency manipulation, wage suppression and the negative impacts of uninspected food imports and higher drug costs, the study still projects the TPP will cost manufacturing jobs and exacerbate our trade deficit,” Trumka concluded.
“This report validates that the Trans-Pacific Partnership is not worth passing,” said United Steelworkers (USW) International President Leo W. Gerard. “This report, as mandated by law, indicates the TPP will produce almost no benefits, but inflict real harm on so many workers.”
Trumka and the AFL-CIO are not alone in their condemnation of this report. The International Association of Machinists and Aerospace Workers highlights that includes many of the same provisions, currently in our international trade agreements, that fail to protect basic labor rights.
“The ITC, which historically has overestimated the benefits of trade agreements, predicts that the TPP will increase our nation’s trade deficit in manufacturing. This means that the corporate driven, secretly negotiated TPP will lead to the export of good paying manufacturing jobs to countries like Vietnam that lack basic human rights,” said International President Robert Martinez, Jr., of the International Association of Machinists and Aerospace Workers (IAM). “For ordinary Americans struggling to get by this will result in more unemployment and continued downward pressure on wages and benefits.”
“The IAM has repeatedly called for the inclusion in the TPP of the International Labor Organization Conventions, which explicitly define basic labor rights. Unfortunately, the TPP labor chapter contains the same ineffectual provisions as in other U.S. trade agreements and fails to provide effective mechanisms to deal with countries lacking fundamental labor rights, such as Vietnam, Malaysia, Brunei, and Mexico. That Malaysia, a country cited for human trafficking while focused on rapidly developing its aerospace industry, would be include in the TPP repudiates any notion that the agreement sets a new standard for international labor rights.”
“While the ITC has found that the TPP might increase U.S. GDP by a meager 0.15 percent by 2032, this is of little solace to the working families that will be devastated by the agreement’s numerous flaws. The IAM strongly urges Congress to reject the TPP and focus on a trade policy that benefits America’s working families.”
“The ITC has a long history of being overly optimistic about our trade deals. Yet, even the ITC’s rosy projection paints a picture of the TPP that would be bad for American workers,” said Shane Larson, Legislative Director of the Communications Workers of America (CWA). “Across the electorate and throughout the country, the public is coming out strongly against the TPP and for good reason. The TPP was based on a trade model that has led to lost manufacturing jobs, lower wages, and increased trade deficits. It’s no surprise that those outcomes are what the TPP will deliver.”
The TPP will be hot button issues during this coming election. We have already seen this in the Presidential primary process. People all across the country are challenging candidates to stand up in opposition to this disastrous trade deal now.
“The American public has made clear its overwhelming opposition to the TPP and the approach to trade it embodies, and now this report makes it even more clear why lawmakers of both parties should stand with the American people and loudly oppose the TPP,” Larson stated.
“This year voters across the country are clearly making trade an issue. Most Washington policymakers and politicians are out of touch with the lives of average Americans. The American public is sick and tired of economists projecting fantasies of prosperity for them when it’s primarily multinational corporations that benefit. On Main Street and in workplaces all across America, working Americans know firsthand the consequences of what economists experience in theory,” added Gerard of the USW.
“But in the end, this may be the most damning government report ever submitted for a trade agreement. It is clear that the TPP will be DOA if Congress ever decides to bring it up,” Gerard stated.
This report clearly shows that the drawbacks to the TPP far out weight the meager benefits promised the US Trade Representative and the White House.