New Pacific Trade Deal With Japan Is Game Changer

INVESTOR'S BUSINESS DAILY ^ | Apr.31, 2013 | STEVE FORBES

[expat_panama]

For anybody disheartened about years of disappointing economic news, Japan's recent announcement that it intends to join the Trans-Pacific Partnership (TPP) offers a real reason to celebrate.

Free trade agreements (FTAs) historically are some of the most surefire ways to open up new markets to U.S. exporters while enhancing American interests abroad. They create economic growth by fostering innovation and efficiency and, as a bonus, they generally produce invaluable political benefits.

As FTAs go, Japan's participation in TPP makes this trade pact the Super Bowl and the World Cup of trade agreements wrapped into one. It's a game changer.

It will give American exporters increased access to Japan, a $5.4 trillion economy — the third largest in the world — and one with which the U.S. now has no FTA in place. TPP will eliminate tariff and nontariff barriers inside Japan, letting more U.S. industries export goods and services to Japan...

(SNIP)

TPP is moving forward — with or without Japan. But without Japan's participation, any benefits to the U.S. economy will be marginal, at best. Does anyone believe the status quo is preferable to an economy in which U.S. exporters are suddenly granted new market access to one of the largest economies in the world?

President Obama took a decidedly protectionist position when he campaigned against Sen. John McCain in 2008.  

By bringing Japan into TPP and sealing this critical economic and strategic partnership, he has a valuable, once-in-a-lifetime opportunity to bring tangible benefits for U.S. industries while cementing his legacy as a free trader. It's an opportunity that should not go to waste.

[expat_panama]

fwiw

[gorush]

Big fleas have little fleas
Upon their back to bite ‘em.
Little fleas have lesser fleas
And so ad infinitem.

anon from the time of Leeuwenhoek

[central_va]

Free trade agreements (FTAs) historically are some of the most surefire ways to open up new markets to U.S. exporters while enhancing American interests abroad.

I like Steve Forbes, however this statement is pure BS.

[1rudeboy]

Of course. What does Steve Forbes know about business?

[SeminoleCounty]

Great....more Free Trade...just what we need /sarc

With the EU collapsing....Communist China now off-shoring the off-shoring the US did....and massive Trade Deficits...the US needs more Free Trade now like it needs more Islamic Terrorists collecting Food Stamps

Outside of useless economists at Liberal univesities..few are pushing Free Trade as something “positive”. free Trade does not work....and there is no evidence it does. Period

[1rudeboy]

Never thought of Ronald Reagan as a useless economist at a Liberal University . . . but there ya’ go again.

[RetiredTexasVet]

Probably they would need to actually put “free” into the free trade agreement for it to really work otherwise it’s pretty much the SOS.

[Cringing Negativism Network]

Mainland China is offshoring?

I don’t think so.

[1rudeboy]

Uh, yeah . . . to Viet Nam. Don’t follow this stuff very much, do you?

[1010RD]

free Trade does not work....and there is no evidence it does. Period

Let me submit exhibit one: The United States of America. Long the largest free trade zone in the world. We're also the wealthiest in the world.

[1rudeboy]

Don’t mind the drive-bys . . . they’re fun to engage once, but then . . . .

[Cringing Negativism Network]

You are making a mistake.

You presume that because we have been the most wealthy, we will be the most wealthy.

I see nothing we are currently doing, to support that.

We are exporting everything of value, and buying imported crap. More all the time.

Meanwhile we have racked up a 17 trillion deficit. Approximately.

We are selling our own nation.

[1rudeboy]

I haven’t “racked up” a deficit. I keep a tight budget. And I drink Heineken to my heart’s content, which appears to bother you.

[1010RD]

Perhaps you’ve read this paper already?:http://www.bea.gov/scb/pdf/2008/03%20March/0308_locations.pdf

Here are some more recent follow ups:

Is the US still the worlds leading economy?

http://www.census.gov/newsroom/cspan/myths/20130329_cspan_myths_slides_8.pdf

Have US companies off-shored their production to low wage countries?

http://www.census.gov/newsroom/cspan/myths/20130329_cspan_myths_slides_9.pdf

What are the facts about US companies moving off shore?

http://www.census.gov/newsroom/cspan/myths/20130329_cspan_myths_slides_10.pdf

Where is US Manufacturing?

http://www.census.gov/newsroom/cspan/myths/20130329_cspan_myths_slides_13.pdf

You’ll note that in the world’s greatest free trade zone state-level economic policies like regulation and taxation has caused manufacturing to move from high tax and regulation states to low tax and regulation states.

Isn’t free trade and American federalism grand?

[Spirochete]

And I drink Heineken to my heart’s content, which appears to bother you.

Well, there *is* that Bolshevik red star on the bottle...

[Cringing Negativism Network]

In response I say just two things.

China, not America, is now the world’s biggest exporter.

And: America is now nearly 17 trillion in debt.

[1rudeboy]

That red star always bothered me, and I do prefer Beck's. But no bar around me serves it on tap, and if these moron protectionists have their way, I'd have to drink Bud. To be patriotic, or something . . . while not doing a damn thing about the budget deficit.

So there ya' have it, people. Drink Bud instead of Heineken, and let the fact that our government spends too much money fall by the wayside. It's the patriotic thing to do.

[Zhang Fei]

Great....more Free Trade...just what we need /sarc

With the EU collapsing....Communist China now off-shoring the off-shoring the US did....and massive Trade Deficits...the US needs more Free Trade now like it needs more Islamic Terrorists collecting Food Stamps

Outside of useless economists at Liberal univesities..few are pushing Free Trade as something “positive”. free Trade does not work....and there is no evidence it does. Period

I think there's an assumption here that countries with freer trade are poorer for it. The following Heritage Foundation chart ranks countries with the freest trade policies at the top and the ones with the most restrictive ones at the bottom. If you examine the list you'll see that most of the countries with the freest trade policies are also the ones with the highest per capita GDP. The converse is also true, meaning many of the countries with the most restrictive trade policies are also among the poorest in the world:

[Gunslingr3]

free Trade does not work....and there is no evidence it does. Period

You're right.

We need the government to manage trade.

Of course to do that we'll need the government to set prices. And for that to work we'll need the government to set quotas.

And for all of those to work we'll need to abandon freedom to trade, true and mutual cooperation, which is the fulcrum of property rights on which mankind is lifted from the barbarism of nature into civilization.

Perhaps our government will package these diktats in convenient 5 year plans.

We can call them the New Economic Plan. I sure it will usher in an age of wealth and wonder...

Why is it on Free Republic people decry actual freedom and want government dictating who can trade with whom and on what terms. As though the beknighted hand of the bureaucracy had someone fostered all the wealth these posters utilize to share their views...