TIME: The Trans-Pacific Partnership Will Help Define President Obama’s Legacy

04/14/2015

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5:00 AM ET | Source: TIME

The Trans-Pacific Partnership Will Help Define President Obama’s Legacy

The massive TPP trade deal could help boost the global economy and President Obama’s legacy—if Congress lets it happen

That debate is now coming to a head because negotiations among a dozen Pacific Rim nations over the Trans-Pacific Partnership (TPP)—an enormous multilateral trade deal involving a dozen Pacific rim countries—are entering the final stages. The talks now include the United States, Japan, Canada, Mexico, Chile, Peru, Australia, New Zealand, Vietnam, Singapore, Malaysia and Brunei. This group represents 40 percent of world trade and 40 percent of global GDP.Without TPA, there will be no TPP, say trade advocates, which would cost America significantly. Too bad, counter trade opponents. If Americans can’t influence the deal’s content through their representatives, America is better off without it.

What’s at stake? TPP proponents say the deal would generate hundreds of billions of dollars of economic gains over the next decade by reducing tariff and non-tariff barriers across the 12 countries it covers. It would enhance security relations among member states, boost labor and economic standards and set rules for global commerce on free-market terms. For some countries, TPP would give their economies a significant boost. Projected GDP growth in Japan and Singapore for 2025 would be nearly a full 2 percent higher with the deal than without. Malaysia’s GDP might be higher by more than 5 percent. The difference for Vietnam might be more than 10 percent.

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