Monday, September 19, 2016

Vietnam and Mexico are main concerns of TPP trade deal, the latter assuming TPP is to serve as renegotiation of NAFTA. Both countries would need to change their labor laws and practices to implement TPP obligations-Politico, Rep. Sander Levin and Simon Johnson, March 2015

"For TPP, the main concerns are Vietnam and Mexico."

March 2015, Politico: 

3/17/2015, "Putting the TPP on the Right Track," Politico, by Simon Johnson and Ohio Rep. Sander Levin

p.1 of 2: "Here are some of the salient challenges to getting TPP right.

First, on the incorporation of international labor standards, recent experience
in Guatemala, Honduras, and Colombia illustrates how important oversight and enforcement are — and how difficult progress can be when enforcement is weak and follow-through is slow. For TPP, the main concerns are Vietnam and Mexico. 

(p. 2) Vietnam represents the first time the U.S. is negotiating a broad trade agreement with a command economy. As a country that has never allowed workers to choose their own representatives and where the single labor union is part of the Communist Party, Vietnam will require not only major changes to its laws and practices, but also regular monitoring of compliance by a panel of experts.

And if TPP is to serve as a renegotiation of the North American Free Trade Agreement, Mexico will need to change its labor laws and practices, to properly implement its TPP obligations....

Third, we must preserve the sovereign right of governments to develop legitimate regulations under the TPP’s investment rules. 

The investor-state dispute settlement mechanism creates an arbitration process, through which companies can claim that a country has broken those rules and seek monetary compensation — and a proliferation of such cases in recent years serves as a wake-up call

One of several important changes would be to ensure that, in the event of a dispute, both governments involved — the host and the home country for the company — can jointly agree that a case is inappropriate and should be dismissed....

Fifth, we must meaningfully address currency manipulation — direct government intervention in the currency markets to weaken one’s currency for the purpose of boosting exports and limiting imports. Currency manipulation has cost the United States millions of jobs over the past decade and a half. China manipulated its currency most dramatically in this time period — accumulating the largest stock of foreign exchange reserves the world has ever known. In earlier episodes, Japan, South Korea and others manipulated their currencies."...


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