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South China Business Journal
HIGHLIGHT white, working class voters prevalent flipped to an extent with most Democrats Subcommittee Chairman Dave Reichert
in the region. The region is relatively joining a sizable portion of establishment (R-WA) opposes the rules that prohibit
uncharted terrain for Republicans in Republicans in reauthorizing the bank’s countries from preventing the free flow
a presidential election year given that charter. Unlike with TPA, much of the of data or forcing local storage of data
the majority of these states have gone support among Democrats was driven in because they fail to cover financial data.
with the Democratic nominee for the part by big labor that saw the bank as a
past six elections. Further, to carry any vital lifeline for U.S.-based manufacturers Within the larger debate over TPP,
of the states in the region, like Ohio (18 and workers in allowing both to compete supporters and opponents of the
electoral college votes), Wisconsin (10), fairly with global competitors. Tea agreement have been producing
Michigan (16) and Pennsylvania (20), Party oriented Republicans continued conflicting estimates of TPP’s impact
Trump will have to improve on the GOP’s in opposition on the grounds the bank on the U.S. economy. Opponents of the
2012 margin with working-class whites. In epitomized “crony capitalism” and pact argue that TPP is simply another
Michigan, Trump would need to improve distorted free market economics. extension of a long line of free trade
this margin by 18 points, Wisconsin 12 agreements that will lead to the further
points, Pennsylvania 13 points, and 6 Since TPA and Ex-Im’s passage, the demolition of U.S. industry and the
points in Ohio. opposition to free trade has grown off-shoring of domestic jobs. By way of
and crystallized around ratification of example, one specific area they point to
C. The Trans-Pacific Partnership the Trans-Pacific Partnership (TPP). is the pact’s “rules of origin” provisions,
Democrat opposition continues to which govern how much of a good can
In 2015, opposition to free trade reached be robust and centered primarily on be produced outside a member country
its apex in Congress with the fight over economic and labor concerns. Specifically, while still qualifying as originating from
Trade Promotion Authority (TPA) liberal opponents of TPP argue that inside a member country, have been
legislation and reauthorization of the the pact places corporate interests over widely criticized by labor unions in the
Export-Import Bank (Ex-Im Bank). those of workers both in America and in automotive industry. Under NAFTA, 62.5
Though the intersection of these issues poorer trading partners. They also argue percent of a car had to be made in one of
had more to do with timing than anything that labor and environmental standards the three member countries to be traded
else, the debate surrounding them are not enforced in other countries, so tariff-free. In TPP, that number was
highlighted the fault lines in both parties the U.S. is effectively rewarding trading reduced to 45 percent, and an appendix
with respect to international business partners that continue abusive practices. states that other car part components
and trade. For TPA, the legislation passed Among Republicans, the opposition would be automatically considered as
with strong support from the majority of tends to be more nuanced and focused coming from a TPP country regardless
Republicans combined with the backing on specific provisions of the agreement of its origin, lowering the number in
of the New Democrat Coalition, a group and their respective impact on American many cases to 35 percent. So a car could
of centrist, pro-trade Democrats led by businesses. By way of example, Senate be labeled “Made in America,” even if a
Rep. Ron Kind (D-WI). The opposition Majority Leader Mitch McConnell (R-KY) majority of its parts, including the steel,
to TPA was an unlikely alliance between opposes the agreement’s exclusion of originates from China.
more liberal Democrats, opposed on tobacco products from the investor-state
labor and environmental grounds, and dispute settlement mechanism; Senate The issue of currency imbalances
subsets of conservative Republicans, who Finance Committee Chairman Orrin between the United States and its trading
distrusted President Obama and who were Hatch (R-UT) wants stronger language partners is another high profile issue that
unwilling to cede the White House more on market exclusivity for biologics; has drawn a lot of attention from TPP
executive authority. On Ex-Im, the script and House Ways and Means Trade detractors, including Donald Trump on
12
HIGHLIGHT white, working class voters prevalent flipped to an extent with most Democrats Subcommittee Chairman Dave Reichert
in the region. The region is relatively joining a sizable portion of establishment (R-WA) opposes the rules that prohibit
uncharted terrain for Republicans in Republicans in reauthorizing the bank’s countries from preventing the free flow
a presidential election year given that charter. Unlike with TPA, much of the of data or forcing local storage of data
the majority of these states have gone support among Democrats was driven in because they fail to cover financial data.
with the Democratic nominee for the part by big labor that saw the bank as a
past six elections. Further, to carry any vital lifeline for U.S.-based manufacturers Within the larger debate over TPP,
of the states in the region, like Ohio (18 and workers in allowing both to compete supporters and opponents of the
electoral college votes), Wisconsin (10), fairly with global competitors. Tea agreement have been producing
Michigan (16) and Pennsylvania (20), Party oriented Republicans continued conflicting estimates of TPP’s impact
Trump will have to improve on the GOP’s in opposition on the grounds the bank on the U.S. economy. Opponents of the
2012 margin with working-class whites. In epitomized “crony capitalism” and pact argue that TPP is simply another
Michigan, Trump would need to improve distorted free market economics. extension of a long line of free trade
this margin by 18 points, Wisconsin 12 agreements that will lead to the further
points, Pennsylvania 13 points, and 6 Since TPA and Ex-Im’s passage, the demolition of U.S. industry and the
points in Ohio. opposition to free trade has grown off-shoring of domestic jobs. By way of
and crystallized around ratification of example, one specific area they point to
C. The Trans-Pacific Partnership the Trans-Pacific Partnership (TPP). is the pact’s “rules of origin” provisions,
Democrat opposition continues to which govern how much of a good can
In 2015, opposition to free trade reached be robust and centered primarily on be produced outside a member country
its apex in Congress with the fight over economic and labor concerns. Specifically, while still qualifying as originating from
Trade Promotion Authority (TPA) liberal opponents of TPP argue that inside a member country, have been
legislation and reauthorization of the the pact places corporate interests over widely criticized by labor unions in the
Export-Import Bank (Ex-Im Bank). those of workers both in America and in automotive industry. Under NAFTA, 62.5
Though the intersection of these issues poorer trading partners. They also argue percent of a car had to be made in one of
had more to do with timing than anything that labor and environmental standards the three member countries to be traded
else, the debate surrounding them are not enforced in other countries, so tariff-free. In TPP, that number was
highlighted the fault lines in both parties the U.S. is effectively rewarding trading reduced to 45 percent, and an appendix
with respect to international business partners that continue abusive practices. states that other car part components
and trade. For TPA, the legislation passed Among Republicans, the opposition would be automatically considered as
with strong support from the majority of tends to be more nuanced and focused coming from a TPP country regardless
Republicans combined with the backing on specific provisions of the agreement of its origin, lowering the number in
of the New Democrat Coalition, a group and their respective impact on American many cases to 35 percent. So a car could
of centrist, pro-trade Democrats led by businesses. By way of example, Senate be labeled “Made in America,” even if a
Rep. Ron Kind (D-WI). The opposition Majority Leader Mitch McConnell (R-KY) majority of its parts, including the steel,
to TPA was an unlikely alliance between opposes the agreement’s exclusion of originates from China.
more liberal Democrats, opposed on tobacco products from the investor-state
labor and environmental grounds, and dispute settlement mechanism; Senate The issue of currency imbalances
subsets of conservative Republicans, who Finance Committee Chairman Orrin between the United States and its trading
distrusted President Obama and who were Hatch (R-UT) wants stronger language partners is another high profile issue that
unwilling to cede the White House more on market exclusivity for biologics; has drawn a lot of attention from TPP
executive authority. On Ex-Im, the script and House Ways and Means Trade detractors, including Donald Trump on
12
