Obama’s deal with the devil: The dangerous treaty that has him teaming with the GOP [View all]

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Obama’s deal with the devil: The dangerous treaty that has him teaming with the GOP
"Americans should be as proud of this agreement as Madrid should be of the Spanish flu," said one Democrat

DAVID DAYEN


(Salon) Trade deals have upended the typical dynamic in Washington, with Congressional Republicans and the White House aligning against members of the President’s own party. The White House wants so-called “fast track” authority to negotiate agreements like the Trans-Pacific Partnership (TPP), and get an expedited up-or-down vote with no amendments or filibusters. Democrats disapproving of prior trade deals like NAFTA don’t want to give up those Congressional powers.

To be honest, I hesitate to call these trade deals; TPP’s title doesn’t include the word. Critics believe they have far more to do with maximizing corporate profits – whether through ensuring higher prices for prescription drugs or aggressively enforcing intellectual property restrictions or allowing companies to sue governments over their sovereign laws — than facilitating the exchange of goods. But at least one dissenting Congressman thinks TPP also fails on its own terms, as a trade agreement.

The Obama Administration has tried to sell skeptical Democrats on TPP, not with economic arguments but national security ones. The theory is that a successful trade deal that lowers tariffs — taxes on imported goods, basically — and imposes higher standards on the 12 countries negotiating TPP will help America combat China’s rising influence, since that country is not part of the agreement. “If we do not help to shape the rules so that our businesses and our workers can compete in those markets,” President Obama said at a news conference on Friday, “then China will set up rules that advantage Chinese workers and Chinese businesses.”

But Rep. Brad Sherman (D-CA) claimed in a conference call last week that TPP would actually give China special privileges. “This is a great deal for China because of the ‘rules of origin’ provision,” Sherman said. “Goods can be 65 percent made in China, then they can ship them to Vietnam, slap a ‘Made in Vietnam’ label on it and get them into this country duty-free. But because China’s not party to the agreement, we can’t get our goods in [to China].” In other words, China would get the benefits of selling its goods without tariffs, while not having to open their markets to U.S. goods or abide by any other TPP rules.

That’s a very serious charge, one that would undermine the purpose of outflanking China, instead handing them trade preferences through the back door. And AFL-CIO President Richard Trumka made the same allegation yesterday. ................(more)

http://www.salon.com/2015/04/21/obamas_deal_with_the_devil_the_dangerous_treaty_that_has_him_teaming_with_the_gop/