Introduction. The Trans-Pacific Partnership (TPP) was the centerpiece of President Barack Obama's strategic pivot to Asia. Before President Donald J. Trump withdrew the United States in 2017, the TPP was set to become the world's largest free trade deal, covering 40 percent of the global economy.
The TPP is a trade agreement with 11 other countries in the Asia-Pacific, including Canada and Mexico that will eliminate over 18,000 taxes various countries put on Made-in-America products. With the TPP, we can rewrite the rules of trade to benefit America's middle class.
Protectionism is the restriction of trade with other nations in order to protect domestic firms. Free trade is the elimination of barriers to trade to create large open markets for goods and services.
Free trade is good for consumers. It reduces prices by eliminating tariffs and increasing competition. ... In principle, this will make goods and services cheaper. In contrast, protectionism can result in destructive trade wars that increase costs and uncertainty as each side attempts to protect its own economy.
The TPP creates a special dispute resolution process that corporations can use to challenge domestic laws and regulations. Corporations could directly sue our government to demand taxpayer compensation if they think our laws limit their “expected future profits.”
The TPP is good for rural America.
Agricultural exports already provide 20 percent of U.S. farm income and support 1 million American jobs. The trade opportunities created by the TPP will boost farm income, support more local jobs, and generate new economic activity across rural America.
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