Published by El Nuevo Herald on April 09, 2015
Since 2005 we have been working on this gigantic multinational secret agreement, which handled 40% of world production and includes, so far, 12 countries.
United States and Japan are two major economies signatories of the agreement. For Latin America are Chile, Peru and Mexico. Among the countries that have shown interest are Colombia and China.
This partnership agreement is to stimulate investment, production and trade among member countries, benefiting significantly those developing.
Recently, I participated in conference call with David Simas, strategic advisor at the White House on the subject. There is pointed out that in light of the transpacific agreement, is a priority for the United States to renegotiate the North American Free Trade Agreement (NAFTA), which Mexico is also a signatory.
Furthermore, it was emphasized that labor and environmental rules must be really consistent for all countries.
Finally, Simas stressed that this agreement is beneficial for the United States since 98% of our exports are carried out by small firms, which encourages diversity of production and creates jobs.
From the transpacific agreement have been known, until now, the following principal details:
1. You have to reach an agreement that benefits members, optimizing their profits. For example, in the case of Japan, a reduction in import tariffs on automotive will hurt our domestic industry. In return, cheap agricultural products exported to Japan will damage their industry.
2. With respect to intellectual property, the agreement would extend the validity of international patents, including medicines, surgical procedures and rights to movies. While acknowledging that "piracy" is a scourge plaguing investors, in the case of medicine many countries, generic manufacturers, would be affected to extend the validity of the original patent. Consequently, medicines would be increasingly expensive, something that certainly affects health.
On this, the Nobel Economist Paul Krugman says, "If pharmaceutical companies raise their prices in developing countries, does this action will benefit US workers ? Probably not much. "
The intellectual property agreement incorporates the owner's authorization to import from an online platform.
It also includes the controversial proposal that companies can sue governments to introduce new laws that harm their business. Furthermore, US manufacturers want to reduce regulation in genetically modified products and in pesticides and additives.
Returning to China, it is no secret that the United States needs to be grounded as the superpower that is, countering growing Chinese influence. That's geopolitics.
For example, recently the Asian Infrastructure Investment (AIIb), which is a multilateral organization led by China, was created. Although the United States tried to convince closest allies did not join that group, several of them have become founding shareholders of the development bank, which, as suspected, will have enormous resources to finance the regions of their choice.
Many have not realized this: while American manufacturers stay with their brands and designs, the Chinese are left with the production. In fact what they do is accelerating the dismantling of the few Western industrial parks. Later, when reviving factories will be unattainable, raising production costs will be for real and thus the Chinese hegemony.
If we add to this that the Chinese kept artificially devalued its currency to boost their exports, we can say that if the United States fails to take firm and decisive actions in the short term, the collapse of the dollar as the global benchmark will not wait and thus an economic crisis of unknown magnitude for humanity.
Finally, what is sought with the TPP is the individual development of each country. So, countries need to export manufactured products only in their countries, not in China.
Main and powerful reason for China not being part of the TPP.
We must not allow China to enter the TPP !!!!
BENJAMIN F. DeYURRE
Economist and journalist.
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