Dean Baker: The Trans-Pacific Partnership: A Trade Agreement for Protectionists

The Trans-Pacific Partnership (TPP) stands at the top of the Obama administration’s trade agenda. The argument from its supporters is that this agreement is part of the never ending quest for freer trade. The evidence from what we know of this still secret pact is that the TPP has little to do with free trade. It can more accurately be described as a pact designed to increase the wealth and power of crony capitalists.

At this point, with few exceptions formal trade barriers, such as tariffs and quotas, are not very large. If lowering or eliminating the formal barriers that remain were the main agenda of this pact, there would be relatively little interest. Rather, the purpose of the pact is to use an international trade agreement to create a regulatory structure that is much more favorable to corporate interests than they would be able to get through the domestic political process in the United States and in the other countries in the pact.