The release of the U.S. International Trade Commission (ITC) report on the Trans-Pacific Partnership (TPP) this week demonstrates that the TPP would not deliver the economic benefits promised by the U.S. Trade Representative. Instead, the report shows that the deal would be disastrous, increasing the U.S. trade deficit by over $21 billion per year and harming employment in key industries.
Most alarmingly, the ITC report projects that the TPP would increase the U.S. trade deficit in both manufacturing and the services sector. According to the report, once fully implemented, the TPP would decrease manufacturing output by over $11 billion per year and would decrease U.S. employment in manufacturing by 0.2%. The report also highlights concerns that the TPP would put call center jobs at particular risk of being offshored.
The report is particularly disturbing because the ITC has a track record of being overly optimistic about the effects of free trade deals on American workers and our economy.
"Across the electorate and throughout the country, the public is coming out strongly against the TPP and for good reason," said Shane Larson, CWA Legislative Director. "The TPP was based on a trade model that has led to lost manufacturing jobs, lower wages, and increased trade deficits. It's no surprise that those outcomes are what the TPP will deliver."