Gallagher’s OpEd Explains the Problem with TPP
Professor Kevin Gallagher of the Frederick S. Pardee School of Global Studies at Boston Univeristy is unconvinced that the fast-track trade authority that US President Barack Obama is seeking for the Trans-Pacific Partnership (TPP) is a good idea.
Gallagher made his case in an OpEd published in BUToday (June 11, 2015), ttled ‘The Problem with Obama’s Trade Pact.’ Succinctly put, his main argument is that “the TPP will bring little in terms of economic benefits for the majority of Americans, but will involve considerable risks.”
The following excerpts from the OpEd explain the argument:
A look at the numbers is revealing. A government study by the US Agriculture Department shows that the deal would have no economic benefits for the economy, concluding that “the TPP is unlikely to have substantial macroeconomic effects.”
… Our loss is not our trading partners’ gain. The benefits for all the TPP countries are estimated by the Peterson Institute to be 0.49 percent of their combined GDP. The TPP is estimated to actually hurt the economies of Indonesia, Thailand, the Philippines, and many South Asian countries.
With the economic gains so small, and even then only materializing a decade from now, it is no wonder that members of Congress at least want to make sure the agreement, at a minimum, does not put US businesses or workers at a disadvantage or undermine the public health, safety, and environmental policies on which Americans rely.
The full OpEd can be read here.
Gallagher is an Associate Professor of global development policy at Boston University’s Frederick S. Pardee School of Global Studies, where he co-directs the Global Economic Governance Initiative and the Global Development Policy Program. Learn more about him here.