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RTAs coming soon…or not.
SLIDE 17K
TPP The Trans-Pacific Partnership is a controversial and highly negotiated proposed RTA which includes nations throughout the Asia-Pacific region: Australia , Brunei , Canada , Chile , Japan , Malaysia , Mexico , New Zealand , Peru , Singapore , the U.S. and Vietnam . The TPP seeks extensive liberalization of goods, services, and investment throughout the region. Those opposed to this proposed RTA cite a lack of transparency (secrecy) of the negotiations, and concern that the agreement will increase corporate power and reduce consumer and environmental protections . The level of contentiousness and the inability of the nations to reach an agreement on multiple issues including the environment, agriculture, and intellectual property has been revealed in documents leaked by Wikileaks. The jury is out as to whether this RTA will ever go live, but the Trans-Pacific Partnership is likely to remain a controversial and divisive issue for some time, so a financially literate person should know about it. TTIP This is the Transatlantic Trade and Investment Partnership , also referred to as TAFTA (Transatlantic Free Trade Area.) A proposed FTA between the EU and the U.S. , progress on this controversial agreement has also been delayed by document leaks by Wikileaks. Like TTP, issues of secrecy as well as disputes regarding labor, the environment, agriculture, and other matters have made this RTA an uphill battle. Critics believe this agreement will create a mega-RTA that increases corporate power and makes government regulation of markets difficult. The jury is out on this FTA also. The TTIP is frequently mentioned in the news and in political and economic debate, so a financially literate person should know about it. The Big Picture There are many benefits to free trade, including better, cheaper goods for the consumer, economic growth, increased innovation, and a reduction of hostilities between trading partners. Barriers to trade are tactics which are protectionist in nature, such as tariffs, licenses, and quotas. The WTO multination agreement provides a basic level of free and unrestricted trade. Many countries and economic units negotiate bilateral FTAs to expedite and enhance free trade. RTAs are multilateral trade agreements within a particular global region. Two proposed, controversial, and potentially powerful RTAs are TTIP and TPP. To be financially literate in the 21st century, you should know about the benefits of free trade, and about the agreements and organizations that shape global trade. Let’s Practice! Select from the following practice activities: Let's Practice: Can HnnH’s Glucosia Sales be Saved? (This may be completed as a whole class exercise.) Exploring 21st Century Skills and Issues: Side Trip to the World Trade Organization SLIDE 17L PRODUCT PREVIEW
321 THE 21st CENTURY STUDENT’S GUIDE TO FINANCIAL LITERACY
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