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MrRodgers -> RE: Trump's decision to cancel TPP helps China (1/23/2017 8:25:59 PM)
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quote:
ORIGINAL: heavyblinker
http://money.cnn.com/2017/01/23/news/economy/tpp-trump-china/index.html
quote:
Trump's decision to jettison the largest proposed free trade deal in history leaves the door open for Beijing to push its own brand of trade in a region that is home to many of the world's fastest-growing economies.
Edward Alden, a senior fellow at the Council on Foreign Relations, said he was "baffled" as to why Trump would try to renegotiate NAFTA, which governs trade with Mexico and Canada, while abandoning TPP wholesale.
"Trump has single-handedly given away an enormous source of leverage over China," Alden said. "The first rule of negotiating is don't give away something for nothing, and he's done that right off the bat."
China is likely to be emboldened by Trump's backpedaling. Sen. John McCain, a former Republican presidential nominee, said that it was a "troubling signal" of American disengagement at a time when "we can least afford it."
"It will create an opening for China to rewrite the economic rules of the road at the expense of American workers," McCain added.
Beijing is already pushing its own trade deal known as the Regional Comprehensive Economic Partnership (RCEP). It includes many countries, such as Japan and Australia, that would have been in TPP.
If RCEP succeeds, China would be in a stronger position to lead a bigger free trade area in the future. Already in Asia, some countries, like the Philippines, are aligning themselves with China.
Chinese officials are also welcoming Latin American nations to RCEP.
Critics worry that Beijing will increasingly set the rules and global standards that govern trade.
TPP included provisions that would have required countries like Vietnam and Brunei to observe international standards relating to forced labor and collective bargaining -- principles have long been valued by the U.S.
Not only has Trump allowed China to lead the way in the world's fastest-developing economic region, he has left China as the biggest supporter of globalization. Good job voting for the end of your position as a global economic leader, America!
First of all, this concedes nothing in terms of any US technological advantages.
Second of all, there were monopoly provisions that Australia had already told all parties that would never pass their legislators.
Third and most significantly for workers but of least importance to the profiteers, is the obvious lack of any enforcement mechanism or desire to enforce any so-called 'international standards relating to forced labor and collective bargaining.'
Most all so-called 'free trade' agreements are not free trade agreements at all. They are an attempt to codify current western advantages into the law of all of the countries involved. irrespective BTW of most all environmental and safety regulations currently observed by the west.
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