Trump Was Right About TPP Benefiting China (This is interesting)

theintercept.com ^ | David Dayen

[RoosterRedux]

Donald Trump lambasted the Trans-Pacific Partnership at Tuesday night's Republican presidential debate, contending that China would use it to "take advantage of everyone"--generating snickers from journalists and a withering refutation from Rand Paul, who said "we might want to point out that China is not part of this deal."

But Trump never suggested that China was part of the TPP, only that the country would "come in, as they always do, through the back door" of the agreement. And he was right.

The TPP does indeed allow China and other non-members to reap benefits from the deal without having to abide by any of its terms.

Here's how it works: TPP and other free trade deals allow signatories to exchange goods without tariffs. But we live in a complicated world, with source materials derived from one country often traveling through a supply chain to another and completed in a third before moving to a retail market.

To cope with this, TPP adds a "rule of origin" chapter to determine whether an amalgamated good qualifies for tariff-free status. This is particularly important in Southeast Asian nations like Vietnam or Malaysia, which get a significant amount of production materials from China.

TPP says that all materials that go into a good, outside of a de minimis 10 percent, must derive from TPP countries. However, there are numerous exceptions and exemptions, along with a confusing set of calculations to determine eligibility. Through these cracks in the agreement, as Trump alluded, China can deliver goods to TPP countries without tariffs.

Right now, the U.S. reserves the right to slap large tariffs on China, as it has done on steel (up to 236 percent), solar panels (up to 78 percent) and tires (up to 88 percent). But under TPP...

[rwoodward]

This is an in your face example of why Trump is by far the BEST candidate on the stage. The other ones are just auditioning for a job in the Trump administration.

[RoosterRedux]

Vy interesting.

Since Trump is running, in part, on his strength at negotiating and understanding contracts (with emphasis on China specifically), he has probably analyzed the TPP at great length (with the assistance of his lawyers).

Doubtful that Rand has done so.

If Trump is correct about China and TPP, he will make a very BIG deal of this shortly.

[Texas Eagle]

Glennyth Beck and his girlfriends/co-hosts were giggling like little, well, girls over Rand Paul's seemingly priceless zinger aimed at Donald Trump and his TPP remark.

Today, no giggling. At least not at Trump's expense.

'Course, no apology or acknowledgement that Trump was right, either.

[patriotspride]

The Donald never comes to the negotiating table unprepared. Its what made him a Billionaire.

---

And like an excellent negotiator never lets the opponent know what his final position is until its “ closing time”

The MSM is so caught up in gotchas that they miss the fact that The Donald is not going to reveal everything at this early stage. He will give them a glimpse at what they are missing e.g. China leveraging agreement, but they will miss that...

[sunrise_sunset]

China can join TPP whenever it wants, it is a living agreement that allows other countries in. South Korea, Philippines and Indonesia may also join later.

Paul made a little quip and the globalists seized on it.

[sunrise_sunset]

The lack of currency manipulation penalty is also the reason Hillary said she was against it (after being for it). This isn’t even a big story.

Everyone knows, and the agreement stipulates, that TPP is supposed to eventually include China. The informed forces that say otherwise have an agenda.

[aMorePerfectUnion]

Analysis of TPP from The Electronic Frontier Foundation

[Jane Long]

If Trump is correct about China and TPP, he will make a very BIG deal of this shortly.

---

He’s battering away, on WSJ, on Twitter, this morning.

Go Trump!

[Lopeover]

He the one!

[Jane Long]

I am so sick of Beck.

How many more “world exclusive scoops” is this guy good for?

Why hasn’t Sirius dropped his non-show, yet? I listen to Michael Berry if I listen to the radio, during that time-slot. Beck spent his last 1 cent of credibility on that Boston bomber “scoop”.

[Lopeover]

TPP screws of our immigration laws as well! Countries can go to UN and File some kind of complaint that we are not taking enough of their workers!! Truly.

[Texas Eagle]

I usually monitor several shows via talkstreamlive.com

I just happened to click on Beck's link yesterday morning in the middle of his giggle-fest.

[Jane Long]

Thanks for that link to TPP breakdown.

(Ping)

[Liz]

WIKI REFERENCE: Regional Comprehensive Economic Partnership (RCEP) is a proposed free trade agreement (FTA) between the ten member states of the Association of Southeast Asian Nations (ASEAN) (Brunei, Burma (Myanmar), Cambodia, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand, Vietnam) and the six states with which ASEAN has existing FTAs (Australia, China, India, Japan, South Korea and New Zealand). RCEP negotiations were formally launched in November 2012 at the ASEAN Summit in Cambodia.

[NKP_Vet]

Carl Icahn was on with Neil Cavuto yesterday and took him to task for not asking Trump more economic questions. He said Trump was the only one on stage that knows what he’s talking about. It was funny seeing Cavuto being schooled by this multi-billionare about the economy and how to fix it.

[Lake Living]

I wish Breitbart had its own place on Sirius XM like Fox, CNN, etc. Beck can have his slot but I would like an alternative to the MSM that is on 24/7 - even if Breibart had to run repeats of earlier in the day broadcasts. I know they are now on in the former Mike Church spot but I rarely get to listen at that time. I rarely listen to Beck anymore.

[RoosterRedux]

Cavuto also blew it when interviewing Kasich last night about whether banks should be allowed to fail.

Kasich said "no" because he didn't want to punish depositors.

Cavuto knows full-well that depositors are covered by FDIC but he let Kasich off the hook by not bringing it up.

I guess Cavuto figures that Kasich is a lost cause.

[georgiegirl]

I’m listening to Glennyth right now, and don’t hear him or “friends” lightening up on Trump. Glenn thinks Trump’s supporters are falling mindlessly behind their “leader”. They’re still in their giggling, mocking mode. Poor Glenn, can’t understand how the conservatives have come to such a Trump-induced mindless state.

[JAKraig]

I just bought 36 large panels, nearly 12kw for my house. The original brand I selected after months of research was made in Germany. The German company has a couple of manufacturing facilities in the US because most of the demand is here and you save by not shipping them. The Panel I wanted however was a large size and not made here yet. The company I bought them from let me know that they would be a couple months late because of production problems in Germany and suggested I take a slightly smaller cell from China and that they would refund me money based on that. I didn't want a cell from China. So ended up buying from the last major American manufacturer of solar panels. For a $5.00 radio I guess China is OK but when it comes to spending 10’s of thousands of dollars I'm not doing it in China.

The Tariff on solar cells likely cost me about $15,000 extra, I'm not sure what I would have done if the China cells were only 1/5th the cost of the American. China was dumping their cells here, the tariff was fair.

[samtheman]

I didn’t watch the debate, and the posted video in this article ends at the moment Rand Paul says “China is not part of this deal”.

Did Trump respond to that with any of the points made in this article?