Saturday, October 5, 2013

The Biggest Secret Trade Deal You've Never Heard Of, Explained

The United States is nearing the end of negotiations on a massive free trade deal called the Trans-Pacific Partnership. Here's what it's all about.

The Obama administration is nearing the end of negotiations on one of the most far-reaching international free trade agreements in US history. The deal, called the Trans-Pacific Partnership (TPP), is aimed at boosting trade among 12 participating countries, and the next and final round runs July 15-24. The negotiations don't just concern the selling of shoes and toothpaste across borders; the trade deal, which will be the product of a three-year process, has the potential to affect many areas of American life. And because information on the negotiations is not public, it's hard to know what those impacts will be. Here's what we do know so far:
What countries are involved? The TPP currently includes the United States, Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. But it could eventually include half the countries in the world.
TRANS-PACIFIC PARTNERS' TRADE VALUE WITH THE US

$0 to $650 (in billions)
How will it affect US law? The agreement, which has a total of 26 chapters, could affect a host of policy areas, ranging from intellectual property rights to product safety and environmental regulations. Here's how: To make trade easier between countries with different sets of regulations, parties to international trade pacts have to bring their regulations into accordance with common international standards. This can lead to pressure to revise rules in areas like the environment and food and workplace safety in the United States, according to trade experts Josh Meltzer, professor of international studies at Georgetown Law School, and Susan Aaronsen, professor of international affairs at George Washington University. Once the agreement becomes international law, countries can also sue the United States for what they see as violations of the agreement, which can compel Washington to alter US law and regulations.
What's with the secrecy? The American public is not allowed to see the text of this deal while its being negotiated. This has some lawmakers and advocacy groups up in arms. Severalmembers of Congress have recently called on the United States Trade Representative (USTR) to release the draft that is under construction to the public, but to no avail. The text will become public once the final deal is signed by all countries.
Trade deals always operate under a certain level of secrecy, trade experts say, which makes it easier for countries to negotiate amongst themselves without too much noise from advocacy groups and others inside countries. "That is how trade deals have worked…if they are made public, all interested groups can start tearing things apart before it's even done," says Bryan Riley, a senior policy analyst at the Heritage Foundation. But there is precedent for releasing proposed trade deal information to the public. A full draft text of the Free Trade Area of the Americas was released in 2001 during negotiations on that 34-nation pact; a draft text of the recently-completed Anti-Counterfeiting Trade Agreement was released; and the World Trade Organization posts negotiating texts on its website.

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