Trans-Pacific Partnership explained

By Kaye Foley

Talks with Trans-Pacific Partnership (TPP) trade ministers concluded in Hawaii on Friday, but without an agreement on what would be the largest free-trade deal ever. Trade ministers said that they have made “significant progress” and plan to continue negotiations, but with no date for continued talks set.

The TPP involves the U.S., Canada, Mexico and nine other Pacific Rim nations. These countries represent about 40 percent of the global GDP, according to the Peterson Institute. By 2025 the deal could potentially increase the United States’ annual income by $77 billion.

As with any trade deal, the TPP involves more than just freeing up the trade of goods. While it would lower tariffs and ease regulations, liberalizing certain products like rice, sugar and trucks for the nations involved, it would also address some of the rising issues of a global economy, such as patent laws for pharmaceuticals and international data transfers over the Internet.

President Obama is spearheading the support for the pact, which is opposed by many of his fellow Democrats. The trade deal has been the cause of a lot of contention on Capitol Hill.

Supporters believe it would be beneficial to all involved, opening up new opportunities and leveling the playing field, as labor and environmental standards would be imposed on the trading partners. The White House also thinks the deal would help the U.S. assert more influence in the area.

However, those opposing the TPP think it prioritizes corporations by limiting competition and giving foreign companies too much power in U.S. business. Foreign corporations and investors would be able to challenge the U.S. government through special tribunals when they believe regulations or actions hurt their investments.

If a final deal can still be reached, for the next six years the president will need only a simple “yes” or “no” from Congress — meaning Congress won’t be able to change any of the terms of the agreement — since “fast track” authority passed this June.

So when it comes to the Trans-Pacific Partnership, after watching this video, at least you can say, “Now I get it.”