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The Trans-Pacific Partnership trade deal: Opposition
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Liberal Democrats led by Sen. Elizabeth Warren (Mass.) and Senate Minority Leader Harry Reid (Nev.) and labor unions formed an unlikely alliance with tea party and conservative Republicans in opposing the Trans-Pacific Partnership trade deal (TPP). Together, they also opposed trade promotion authority (TPA) legislation and openly criticized President Barack Obama's (D) efforts to negotiate and pass a final trade deal with 11 other nations. Critics compared the TPP to the North American Free Trade Agreement (NAFTA) and argued that Americans would lose jobs, as they did after NAFTA was signed into law.
Another major point of contention in the TPP deal was the Investor-State Dispute Settlement (ISDS) provision, which critics argued would allow foreign businesses to challenge U.S. labor and environmental laws. Warren argued that ISDS would unfairly favor multinational corporations, allow foreign businesses to change or ignore American labor laws and environmental regulations, and hurt American workers. She wrote, "ISDS would allow foreign companies to challenge U.S. laws — and potentially to pick up huge payouts from taxpayers — without ever stepping foot in a U.S. court."[1]
| "Sen. Brown Speaking at [a] Finance Committee Hearing on Trade Policy," April 16, 2015. |
The trade deal also faced opposition because it did not address currency manipulation, a practice in which countries, like China, keep their currencies artificially weak in order to make their exports more competitive on the world market. In May 2015, then-Speaker of the House John Boehner (R-Ohio) dismissed the idea that Congress should address currency manipulation before voting on TPA and TPP legislation. He said, "We’ve had this discussion about currency between countries and continents for the 25 years that I’ve been here. And to think that Congress can legislate what the currency valuations are between countries is almost laughable. I think the Department of Treasury under the four presidents I’ve served with has done a very good job of working with our allies around the world when some of these currencies get — in some peoples’ minds — out of line. I think that’s a much better approach than trying to legislate what should or shouldn’t happen with currency valuation."[2]
Congress criticizes the secrecy of the deal
Members of Congress on both sides of the aisle criticized the Obama administration for the secretive nature of the deal. Before the final trade deal was released, legislators and staff, who were required to have high-level security clearance credentials, were required to turn in their cell phones before entering a private, soundproof room in the basement of the Capitol building where they could view the trade document. If they took notes on the document, which was "hundreds of pages long, filled with technical jargon and confusing cross-references," they had to leave their notes in the room, according to NPR. Sen. Sherrod Brown (D-Ohio) said, "I bet that none of my colleagues have read the entire document. I would bet that most of them haven't even spent a couple hours looking at it. ...There is more access in most cases to CIA and Defense Department and Iran sanctions documents — better access to congressional staff and others — than for this trade agreement. ...the secrecy begs the question — what's in this agreement that we don't really understand or know about?"[3]
Warren also criticized the secrecy of the trade document. She said, "If the president is so confident it’s a good deal, he should declassify the text and let people see it before asking Congress to tie its hands on fixing it."[4]
White House Press Secretary Josh Earnest responded to Warren and other lawmakers' concerns about the lack of transparency by placing the blame on the lawmakers. He said, "If they are not aware of what’s being negotiated, it’s because they have failed to take responsibility for reading the document that we provided to them."[4]
Obama responds to Democrats who opposed TPP
During a May 8, 2015, speech at Nike Headquarters in Oregon, Obama addressed his critics, noting that many of them usually supported his agenda. He said, "[T]hey’re my fellow travelers on minimum wage and on job training and on clean energy. On every progressive issue, they’re right there with me. And then on this one, they’re like whooping on me. ...I actually think some of my dearest friends are wrong. They’re just wrong."[5]
Rep. Rosa DeLauro (D-Conn.) responded to Obama's comments that those who opposed the TPP were distorting the facts. She said, "It may be a freebie, a throwaway line that denigrates members of Congress. Well, presidents can do that. But the bulk of the information buttresses everything that we have been saying and that’s the ground on which we stand."[6]
| "Senator Warren on the Trans-Pacific Partnership Trade Agreement," March 11, 2015. |
Warren, a friend of Obama's, was his main opponent in the battle to pass trade legislation. She argued that the TPP was not "the most progressive trade agreement in history" and that, like previous free trade agreements, it would have detrimental results.[7]
During an interview with Yahoo, Obama said, "She’s [Warren is] absolutely wrong. The truth of the matter is that Elizabeth is, you know, a politician like everybody else. And you know, she’s got a voice that she wants to get out there. And I understand that. And on most issues, she and I deeply agree. On this one, though, her arguments don’t stand the test of fact and scrutiny."[7]
Warren was undeterred by Obama's comments. On May 18, 2015, she released the report, "Broken Promises: Decades of Failure to Enforce Labor Standards in Free Trade Agreements," which highlighted the failures of past trade agreements, including NAFTA. Warren argued, "The facts show that, despite all the promises, these trade deals were just another tool to tilt the playing field in further of multinational corporations and against working families."[8]
Obama invited Senate Democrats to the White House on July 7, 2015, in an attempt to repair relationships that were damaged during the TPP and TAA debates. Senate Democratic Whip Dick Durbin (Ill.) said, "The president brought [trade] up. He said, 'I know we weren't together on this, but I also want to tell those of you who were on the other side I was listening, and many of the things you said about this trade agreement I’m going to keep in mind as we enter into final negotiations.'"[9]
Ultimately, Obama's efforts to get Congress to support the TPP failed. Congress did not vote on the trade deal, and President Donald Trump (R) withdrew from the deal days after taking office.[10]
See also
- The Trans-Pacific Partnership trade deal: An overview
- The Trans-Pacific Partnership trade deal: Legislation
- The Trans-Pacific Partnership trade deal: Public opinion on TPP and T-TIP
- The Trans-Pacific Partnership trade deal: Summary of the TPP
- The Trans-Pacific Partnership trade deal: Human trafficking concerns
- 2016 presidential candidates on the Trans-Pacific Partnership trade deal
- The Trans-Pacific Partnership trade deal: Understanding trade terminology
- The Transatlantic Trade and Investment Partnership
- Currency manipulation
- Trade promotion authority (TPA)
- Trade adjustment assistance (TAA)
- North American Free Trade Agreement (NAFTA)
- Investor-State Dispute Settlement (ISDS)
- Michael Froman
External links
- Office of the United States Trade Representative, "Transatlantic Trade and Investment Partnership (T-TIP)"
- Office of the United States Trade Representative, "Outlines of TPP"
Footnotes
- ↑ Washington Post, "The Trans-Pacific Partnership clause everyone should oppose," accessed May 13, 2015
- ↑ Politico, "John Boehner: Currency manipulation bill a ‘laughable’ endeavor," accessed May 18, 2015
- ↑ NPR.org, "A Trade Deal Read In Secret By Only A Few (Or Maybe None)," accessed May 15, 2015
- ↑ 4.0 4.1 The Hill, "White House escalates Warren feud," accessed May 12, 2015
- ↑ WhiteHouse.gov, "Remarks by the President on Trade," accessed May 17, 2015
- ↑ The New York Times, "Obama Scolds Democrats on Trade Pact Stance," accessed May 18, 2015
- ↑ 7.0 7.1 Yahoo, "Why Obama is happy to fight Elizabeth Warren on the trade deal," accessed May 12, 2015
- ↑ Politico, "Elizabeth Warren fires new shot in trade battle with President Obama," accessed May 18, 2015
- ↑ The Hill, "Obama aims to heal Dem wounds," accessed September 6, 2015
- ↑ WhiteHouse.gov, "Presidential Memorandum Regarding Withdrawal of the United States from the Trans-Pacific Partnership Negotiations and Agreement," accessed February 9, 2017
