Trans-Pacific Partnership faces criticism in Congress

'I will do all that I can to defeat the TPP agreement'

The controversial Trans-Pacific Partnership has been finalized and will be presented to business leaders by US President Barack Obama. However, Congress has already shown skepticism over the pact.

LOS ANGELES, CA (Catholic Online) - Twelve countries in the Pacific Rim agreed to the most ambitious trade pack of the generation last Monday as they tried liberalizing commerce in 40% of the world's economy. However, the deal is facing criticism from the US Congress.
The controversial Trans-Pacific Partnership's (TPP) past has already reached its conclusion in Atlanta after long talks on how to reshape the economy and the trade industries, change the cost of medicinal and necessary products and placing limits for drug manufacturers and car makers.

Negotiation have been worked and settled together with the issues concerning trade and economy such as monopoly rights for new biotech drugs. New Zealand's demands for higher exportation access for dairy products have been settled together with other tough issues as of last Monday around 9 a.m. GMT.
The approval of the agreement will cut trade barriers in the countries within the Pacific Rim and will set common standards from Vietnam to Canada. It will provide a legacy-shaping victory for President Barack Obama, who will be promoting the agreement Tuesday.
The Obama administration looks forward to the increase in influence of the United States in East Asia to help counter the rise of China when it comes to trade and economy. China is not included in the countries under the TPP legislation.
The deal, which took 5 years before being completed, reduces or eliminates the tariffs on almost 18,000 categories of goods. However, Democrats and Republicans in Congress have expressed their skepticism over the pact.
Congress believes the pact could cost jobs and hurt consumers in the long run. Vermont Senator Bernie Sanders, a Democratic presidential candidate, sent out a warning Tweet reading: "In the Senate, I will do all that I can to defeat the TPP agreement."
Other members of the congress believe that the TPP will cost manufacturing jobs as well as weaken environmental laws. Republican Senator Orrin Hatch, head of the Senate Finance Committee, said, "I am afraid this deal appears to fall woefully short." He then urged the administration to wait on intellectual property protections, which included drugs.
U.S. lawmakers are unable to amend the agreement but they can approve or vote it down.
Ministers said the partnership would include a forum for finance ministers from countries participating in the TPP to discuss currency policy principles, which would take certain matters - such as critics' views that Japan drove down the yen to benefit car exporters and other companies - into account.
Democratic Representative Debbie Dingell said, "Nothing that we have heard indicates negotiators sufficiently addressed these issues."
The agreed terms have not entirely met US expectations, such as the five ears of exclusive access to clinical data to win approval for new drugs and extra periods of regulatory review, meaning drug companies would have an eight-year monopoly before lower-cost, generic competition comes into play.
Fonterra, New Zealand, is the world's biggest dairy exporter and wanted to increase its access to the United States, Canada and Japan. New Zealand Prime Minister John Key believes the deal would cut tariffs on 93 percent of their exports to America, Japan, Canada, Mexico and Peru.
"We're disappointed there wasn't agreement to eliminate all dairy tariffs but overall it's a very good deal for New Zealand," Key stated.
America, Japan, Canada and Mexico agreed on how much of a vehicle needs to be made within the TPP region in order to qualify for duty-free status. The TPP would give Japan's automakers an easier time when purchasing parts from Asia for vehicles sold in the United States but includes 25-30-year phase-outs for U.S. tariffs on Japanese cars and light trucks.
Minimum standards have been set for environmental protection between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, America and Vietnam.
Trade ministers agreed the TPP would be open to other countries in the future, including China.
Malaysian Trade Minister Mustapa Mohamed said, "There is a real opportunity for China to be a part of this."
Obama initially pushed the deal to stop China from overtaking the global economy and China's Ministry of Commerce welcomed the agreement, saying they hope it will "promote and make common contributions to Asia-Pacific trade, investment and economic development."

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