The TPP Trade Deal is looming closer to becoming a finalized reality. Current negotiations center around Auto Manufacturing, and Japanese negotiators have constructed an outline that would devastate what remains of the U.S. Auto industry.
Unfortunately the K-Street lobbyists, funded by Wall Street through the U.S. Chamber of Commerce, have already greased the legislative skids to all but guarantee the elimination of thousands of jobs. Chamber of Commerce President Tom Donohue gave Senators $18 million in bribe money to insure passage.
The TPP deal encompasses approximately 40% of total global manufacturing. Trillions of dollars are at stake.
TPP is fully supported by the Obama Administration and the legislative passage of a deal was essentially finalized, through manipulation, by changing the senatorial approvals to a mere 51 votes (Fast Track Trade Authority).
Current TPP negotiations underway in Atlanta, specifically around auto-manufacturing, showcase just how devastating this Trade deal is going to be:
[…] The bilateral deal between the United States and Japan would include a first-of-its-kind dispute resolution mechanism that would impose penalties if Japan were judged to have fallen short of its commitments, the second person said.
At the same time, Japan’s auto manufacturers would be given clearance to buy more parts for cars manufactured in North America without paying trade tariffs under the terms of the deal being discussed.
The North American Free Trade Agreement between Canada, the United States and Mexico mandates that vehicles have a local content of 62.5 percent. The way that rule is implemented means that just over half of a vehicle needs to be manufactured locally.
The set of rules under discussion in Atlanta would bring that to 45 percent, or about 55 percent under a separate calculation used by Japan’s auto industry and regulators, people with knowledge of discussions have told Reuters. (link)
What is currently being constructed resembles negotiations of who gets the remaining parts of a hollowed carcass, the U.S.A. Foreign companies can build their autos in North America, including the U.S. and Mexico by importing most of their parts from their home countries.
This means – in addition to renegotiating the lowering of tariffs on the direct import of assembled vehicles – Japan can build an assembly plant in Mexico, hire low wage Mexican workers, use most of their own ‘made-in-japan’ parts to assemble a vehicle – then sell the final product in the U.S. (North American market).
How does this benefit the U.S. worker or U.S. economy? Short answer, it doesn’t. We become the financial host to an economic parasite feeding on us and exporting our money to fund their economy, not ours.
In addition, this positions TPP to usurp the previous NAFTA (North American Free Trade Agreement ) which was bad enough by itself.
Yes, there is a particular irony in these now increasingly evident realities given the recent protestations by CBS’s Scott Pelley toward Donald Trump:
The Republican presidential candidate calls NAFTA a disaster he will either break or renegotiate if he’s elected president. Watch Scott Pelley’s interview with Trump on Sunday, September 27
Donald Trump, yet again, proven correct in the absolute need to get “fair trade” negotiations, not “free trade“; and also proven correct in the construct of how NAFTA is out-dated by the current TPP deal underway in Atlanta Georgia.
If ever there was a time when an entire nation needed a negotiator like Donald Trump making decisions on our behalf…