Obama Facing An Uphill Battle On Pacific Trade Deal

On Thursday, President Obama worked to sway his own party to approve a fast track legislation deal that will allow his plans for an open trade agreement with Asia to move forward. The agreement, called that Trans-Pacific Partnership has been under fire as many worry that the deal will open US companies up to a whole new set of problems and do more harm than good.Providing A LoopholeMany worry that the deal will create problems for US companies as lobbying groups could look to the trade rules to change legislation that they disagree with. In the past, many nations have struggled to enforce new rules as opposition groups used existing trade rules to block their passage. In 2011, Australian tobacco companies fought against a law to change cigarette packaging by appealing the World Trade Organization and claiming the legislation violated trade rules. Many worry that the Pacific trade pact will similarly give lobbyists a loophole to avoid political obstacles.Currency ConcernsAnother worry among US firms is the possibility of exchange rate issues. With the US dollar on the rise, some companies worry that an influx of foreign goods will hurt their bottom lines. Additionally, auto companies have complained that foreign governments may try to devalue their currencies in order to benefit national businesses under the new trade deal.President Calls For SupportHowever, Obama says these concerns are unfounded and that leaders from all nations are working to create a deal that will guard against such issues. The President is set to pitch the benefits of the trade pact at Nike Inc. (NYSE: NKE) headquarters in Oregon, a symbolic move as the company has been under fire in the past for having dangerous working conditions in its Asian plants. During next week's talk, Obama is expected to highlight the benefits that international firms' workforces will receive once the pact has been signed.