The Trans Pacific Partnership ( Tpp ) Essay

The Trans Pacific Partnership ( Tpp ) Essay

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The Trans-Pacific Partnership (TPP) is an agreement amongst the United States and twelve Pacific Rim countries; its purpose is to liberalize trade amongst the countries participating in the TPP, as a result, aiming to achieve the elimination of trade barriers and begin to develop relations amongst partnering nations. In its essence the TPP is a Preferential (or Regional) Trade Agreement (PTA)—a PTA is “between two or more countries, […] in which each country offers preferential market access to each other” (Oatley 36). Benefits that derive from PTA’s are that it increases national welfare when trade is created but becomes harmful if existing trade is diverted. Therefore, the TPP follows the overall goal that PTAs try to embody; that is to, liberalize trade and increase national welfare. Apart from liberalization of trade and an increase on national welfare, in regards to the United States, TPP will eliminate import taxes on: manufacture and agriculture goods. In addition, putting American workers first by increasing worker protections. If such benefits derive from the TPP, a PTA, why do both presidential candidates show opposition?

Although candidate Hillary Clinton in her years as being Secretary of State under the Obama Administration supported the TPP, once calling it “the gold standard,” now as a candidate for presidency, Clinton opposes such partnership. Reason for such opposition arises from Clinton’s “test” in regards to trade deals, there are three questions/standards she asks: “(I) will [this deal] create jobs in America?, (II) will they raise incomes in America?, and (III) are they good for our security?” (Blake). The conclusions that Clinton arrived to after such test show that the TPP does not meet the “high bar” Cli...

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... the Ricardo-Viner Model and Trump’s rationale for opposing TPP, we can see that exporting does not benefit the U.S., making the argument for non-participation in the TPP, because as a consequence to the lack of exports it creates a surplus for U.S. products. Hence, Trump would rather move toward a protectionist stance in trade policy because although the TPP promote free trade the exports for the U.S. are having slim to none benefit.

To conclude, although each candidate opposes the TPP, Hillary Clinton if elected may return to her prior decision of taking part in the TPP and, as we have seen, a result creating a slow yet beneficial rise in trade and employment for the U.S.. In contrast to Donald Trump, if elected not partaking in the TPP can potentially sever ties amongst the Pacific Rim and neighboring countries causing the U.S. to suffer from the lack of trade.

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