Obama Expected to Mention TPP During State of the Union

The Trans Pacific Partnership is a trade agreement so significant and important, its details can’t be disclosed.

The TPP, sure to make an appearance during tonight’s State of the Union, is a 21st-century trade agreement involving 11 Asian countries along the Pacific Rim, and said to cover 40% of the world’s economy.

The TPP is a subject close to the heart – and the economic plans – of President Obama. In a November trip to Beijing, he urged other world leaders to finalize the agreement, calling it a “high priority” that would strengthen American leadership in the Asia-Pacific region and lead to growth, investment and job prospects for more workers.

The administration has argued that the deal will allow lower tariffs for American exports, in an environment of increasing competition, especially from China. Obama is also touting the deal as a boon for small businesses. When 98% of the US’s exporters are small businesses, new trade partnerships will help them create even more jobs, he proclaimed in last year’s State of the Union address. “Listen, China and Europe are not standing on the sidelines. Neither should we.”

Right now, American citizens will have to take those promises about the impact of the TPP on faith.

The TPP is one of the largest international trade agreements the US will sign, yet most of it is mired in secrecy. Congress won’t have access to the TPP before it is signed, and the terms won’t be publicly disclosed – ironic since the negotiations include 600 corporate advisers, including representatives of Halliburton and Caterpillar.

via The Guardian

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza