Now that the framework of the Trans-Pacific Partnership (TPP) in place, I’m fully expecting the demagogues to come out.
Why I like the TPP
In case you haven’t heard, the TPP is a trade deal between the U.S., Australia, Canada, Mexico, Japan, New Zealand and others. Collectively, these nations account for almost half of all worldwide economic activity.
The idea with TPP is that we will be in a position to trade freely with these countries and they with us. Now, expect some people to come out strongly against it. I believe they’re wrong, but know that you’ll hear politicians on both sides of the aisle trash talk this deal, which still requires Congressional approval.
But note this well: Economic activity improves when you stop playing games, when you stop saying, ‘Well, you can’t send that to us, we’re going to tax that.’
We have so much to gain from this deal because many of the countries we did a deal with currently make it tough for our companies to do business in their markets. China is not part of this deal, which means that all the countries that signed on are now automatically more competitive with China. That means a lot of what we buy will be cheaper! On the manufacturing front, there will now be more markets overseas for us to sell to.
The companies that benefit from trade barriers will tell a lot of lies about this deal and a lot of politicians will get on the bandwagon against free trade. I’m disturbed by demagoguery to come, so I hope this deal makes it to the finish line.
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