TPP, the never seen formula for success

Recently, I came across thistweet by a well-known Professor, who, as usual, tries to argue that the recently signed Trans-Pacific Partnership (TPP) was a once in life time opportunity Sri Lanka missed. It was not the first time he voiced his dissatisfaction over this, as this earlier tweet of him says, with a link to the New York Times article. 

Well the learned Professor must be praising the TPP for its merits to countries like us in the APAC, I thought! Is that true? If yes, what is in it for us? How does it help countries like us? And how are we disadvantaged due to not being a signee to the Pact, as he claims in his tweet?

With these questions in mind, I tried to find anything in the public domain that would help answer these questions. But, it was very difficult to even find a draft of an agreement signed by any nation. But, as the New York Times article which the Professor shared says, “The pact, part of Mr. Obama’s strategy to balance China’s economic ascent, would knit together a largest-of-its-kind trading system in the Pacific”. Further, as the Office of the United States Trade Representative puts it in its website, it is another Made in America product which is aimed at “Leveling the playing field for American workers & American businesses”. As thisarticle by Koichi Hamada highlights “with the TPP, the US is catching a big fish with small bait. But the increased trade and investment flows brought about by the TPP’s ratification and implementation will benefit even the countries that must make larger sacrifices”. So, it is evident from these that this is not a Pact deliberated for the bilateral benefit of signees, rather to largely fulfill unitary requirements of one signee. (also not forgetting the fact that USA is heading to an election and that they need to give the US citizens something if they were to be in power. Further, their efforts to come out of the GFC and the subsequent recession via Fed lead measures have not really worked out and the Europe is also in really bad shape). 

The non-existent Free World

If I go to mainstream media, capital market or listen to any politician, I’m made to understand that we live in a globalized Free World where there are no barriers to trade. (or for years, from the Imperial times, they are boasting of Free Trade). Further, to facilitate such free trade or the free world, they invented apparatus like World Trade Organization, etc. If this is the case, why on earth do we need these other Trade Agreements, which I don’t even know whether override the already existing WTO or other stipulations, to benefit countries? May be this so-called Free World is non-existent and it only exist in documents. Still they are talking about Trade Liberalization and also at the same time some form of protectionism. (I know it is easier said than done!).   

Different views

I think it is worthwhile looking at different views so that we can form some sort of understanding that is not partial or biased. As I mentioned above that this agreement is not something drafted transparently, as the US Senator Bernie Sanders points out in thisarticle. Further, I also think that we should look at merits and demerits of previous Trade Pacts that countries and regions have signed before. Just because it is a very new pact and that the world is in a shaky situation, we should not just opt to this. (I don’t think that it is easy to reverse it once we penned it!). At least, if the Professor points out the great benefits that we derived from any such agreement with other nations (like SL and India Free Trade Agreement, etc), that would be greatly appreciable. I know of this article by economistMartin Feldstein, wherein he argues that trade agreements by Chile with USA have benefitted both.     

Bottomline

As I conclude the post, I have to mention that I do not personally know the Professor nor have I met him. Hence, I do not have anything personal rather than my own reactions to his thoughts. Honestly, I accept some of his thoughts on some other topics like the Appointments to Government positions which appeared in ft.lk as an article, etc. But, on the TPP I have my doubts and it may be true that I’m also one of the Sri Lankans swimming in the Pond called Sri Lanka listening to only our Mass Media such that I’m amazed why countries should go for these types of pacts, as the Professor mentioned in his Ravaya article. I hope that he may also write about the great aspects of the TPP and how it benefits us in an already (non)existent so-called Free World (which is assumed to be facilitated by apparatus like WTO, etc) where there are tariffs to protect their interest, in country, and pacts to protect their interests elsewhere. 

Thought to share this and wrap up.