“The U.S. International Trade Commission (USITC) released its report [May 18, 2016] assessing the likely impact of the Trans-Pacific Partnership (TPP) Agreement that the President has entered into with Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. The USITC’s report, Trans-Pacific Partnership Agreement: Likely Impact on the U.S. Economy and on Specific Industry Sectors, provides an assessment of the likely impact of the Agreement on the U.S. economy as a whole and on specific industry sectors and the interests of U.S. consumers, as requested by the U.S. Trade Representative and required by the Bipartisan Congressional Trade Priorities and Accountability Act of 2015. In making its assessment, the Commission investigated the impact the agreement will have on the U.S. gross domestic product; exports and imports; aggregate employment and employment opportunities; and the production, employment, and competitive position of industries likely to be significantly affected by the agreement. In preparing its assessment, the Commission also reviewed available economic assessments regarding the Agreement, including literature concerning any substantially equivalent proposed agreement. The Commission provides a description of the analytical methods used and conclusions drawn in such literature, and a discussion of areas of consensus and divergence between the Commission’s analyses and conclusions of other economic assessments reviewed….”
Via Public Citizen: TPP Study Projects Worsening Trade Balances for 16 of 25 U.S. Economic Sectors, Overall U.S. Trade Deficit Increase Despite ITC Reliance on Model that Has Systematically Overstated Benefits of Trade Pacts Relative to OutcomesU.S. International Trade Commission – “…the (ITC) released a study on the potential impacts of the Trans – Pacific Partnership (TPP). The report:
- Estimates a worsening balance of trade for 16 out of 25 U.S. agriculture (p. 124), manufacturing (p. 228), and services (p. 340) sectors that the ITC selected to feature. This includes vehicles, wheat, corn, autoparts, titanium products, chemicals, seafood, textiles and apparel, rice and even financial service. Autoparts would be hard hit with employment projected to decrease by 0.3 percent.
- Estimates the TPP will increase the U.S. global trade deficit by $21.7 billion by 2032.
- Projects even the U.S. services trade balance will worsen by 2032 as service imports of $7 billion swamp the estimated increase in exports of $4.8 billion (p. 35).
- Temporarily disregarding the fact that the ITC has underestimated the increase in the U.S. trade deficit caused by almost every pact it has assessed, the trade deficit increase the ITC does project from TPP implementation would equate to 129,484 American job losses, counting both exports and imports, according to the latest administration trade-jobs ratio.
- This makes even more curious the ITC estimate that the TPP would raise employment levels by 0.07 percent (128,000 jobs) in 2032.
- Estimates a decline in output for U.S. manufacturing/natural resources/ energy of $10.8 billion as exports would increase by $15.2 billion and import s would increase by $39.2 billion by 2032.
- Estimates tiny U.S. economic growth gains (42.7 billion or 0.15 percent) and income gains ($57.3 billion or 0.23 percent) by 2032
- In other words, the ITC projects that the United States would be as wealthy on January 1, 2032 with TPP as it would be on February 15, 2032 without the TPP…”