Obama Pushes Trans-Pacific Trade Partnership Forward

On Saturday, US President Barack Obama began working to push his plans for a Trans-Pacific Partnership (TPP) trade agreement through congress despite dissension coming from his own party. During his weekly address, the President urged lawmakers to consider the benefits of lowering barriers to trade with Asia and expressed his support for passing “fast track” legislation that will quickly move the trade agreement through Congress and allow the US to finalize the details of the deal with foreign lawmakers.

Political Presence

Supporters of the trade deal say it is important for the US to become more involved in Asian trade, where China has become a dominant exporter. Not only will the deal allow the US to facilitate trade between itself and Asian nations easily, but it gives the US a bit more political power in the region. During his address, Obama commented that without US involvement, China will be free to “write the rules of trade in the 21st century.”

Support Exports

Additionally, the Obama Administration has said the deal would lower trade barriers and give US exports a must-needed boost. In the past, the US has seen exports to countries with which it maintains free-trade agreements rise; a good indication that the TPP would boost exports to Asia.

TTP Has Many Critics

However lawmakers on both sides of the aisle are wary of a trade agreement with Asia, citing concerns about currency manipulation and the failure of past agreements to live up to expectations. Some worry that increased trade with Asia will lower wages and decrease job growth as more and more Americans will begin to buy foreign products due to the rising strength of the dollar. Automakers have been particularly vocal about this issue, calling for currency manipulation rules to be written into a trade agreement with Asian nations.