The government’s own assessment of the toxic Trans Pacific Partnership (TPP) shows that the controversial trade deal will produce negligible economic benefits while damaging most Americans’ jobs and wages.
The U.S. International Trade Commission’s (ITC) report (pdf), issued Wednesday, shows that the TPP “would likely have only a small positive effect on U.S. growth,” Reuters reported.
“This may be the most damning government report ever submitted for a trade agreement.”
Leo W. Gerard, United Steelworkers
Meanwhile, the ITC estimates a worsening balance of trade for 16 out of 25 U.S. agriculture, manufacturing, and services sectors that cover vehicles, wheat, corn, auto parts, titanium products, chemicals, seafood, textiles and apparel, rice, and even financial service. Indeed, output in the manufacturing sector would be $11.2 billion lower with TPP than without it in 2032, the ITC found, with employment down 0.2 percent. And while vehicle production would gain, auto parts, textiles, and chemicals would see reductions, the trade panel said.
The analysis also estimates the proposed 12-nation trade deal—a centerpiece of President Barack Obama’s economic agenda—will increase the U.S. global trade deficit by $21.7 billion by 2032.
“This report validates that the TPP is not worth passing,” said United Steelworkers (USW) International president Leo W. Gerard, who heads up one of many labor organizations opposed to the agreement.
“In the past, similar reports have proven to widely underestimate the negative impact of trade agreements on American workers and the economy,” he said. “This report as mandated by law indicates the TPP will produce almost no benefits, but inflict real harm on so many workers.”
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